Bitcoin Price Is Trading In This Bearish Flag Whats The Downside Target?
The Bitcoin price has shown some level of resilience above $100,000 in the past few weeks, weathering the storm of uncertainty that came with Donald Trumps inauguration and the launch of the Chinese AI platform DeepSeek. However, a prominent analyst on the social media platform X has come forward with a worrying prediction for the premier cryptocurrency.
BTC Price Breaks Below Bear Flag Pattern $98,000 Next?
In a February 1 post on X, popular crypto pundit Ali Martinez shed light onto an interesting flag pattern the Bitcoin price has been trading inside. According to the analyst, the flagship cryptocurrency could see its value plunge below the $100,000 mark over the coming days.
The rationale behind this bearish forecast is the formation of a bear flag pattern on the 30-minute Bitcoin price chart. A bear flag is a pattern used in technical price analysis characterized by an almost vertical price drop (flagpole) followed by a brief consolidation period.
This technical analysis is an inverse of the more popular bull flag pattern, which typically suggests a continuation of an upward trend. A bear flag, on the other hand, indicates that a price downtrend is likely to persist.
Typically, the upper and lower boundaries of the consolidation range in the flag pattern act as resistance and support, respectively. Hence, it is essential to wait for a successful break beneath the consolidation for the confirmation of the bearish signal.
As shown in the chart above, the Bitcoin price has broken beneath the lower boundary and could be on its way to $98,200. According to Martinez, this bearish setup could be invalidated if the premier cryptocurrency jumps towards $102,800.
While dropping to 98,200 doesnt do well for the bullish case of Bitcoin, the market leader still stands a chance at recovery from this level. However, investors might need to watch out for the $97,190 zone just beneath it.
Martinez noted in another post on X that the $97,190 region is one of the most important support levels for Bitcoin price based on investors cost basis. With over 1.45 million addresses purchasing 1.36 million BTC at this level, holding above $97,190 could prove pivotal to sustaining the bull market.
Bitcoin Price At A Glance
As of this writing, the price of BTC sits just beneath the $100,000, reflecting an almost 2% decline in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down by over 4% on the weekly timeframe.
Featured image created by Dall-E, chart from TradingViewText source: NewsBTC
