Bitcoin price levels to watch as ‘bear flag’ breakdown targets $97K

Key takeaways:

• The emergence of a bear flag on the four-hour chart projects a Bitcoin price drop to $97,000.

• Traders say BTC price may drop as low as $85,000 if key support levels are broken, including the $100,000 psychological level and the yearly opening at around $92,000.

Bitcoin’s ( BTC ) price is forming a classic bearish pattern on lower time frames, triggering fears that a breakdown could lead to a drop toward $97,000.

Breakout points to $97K target

Bitcoin’s price action has formed a textbook bear flag pattern on the four-hour chart, a bearish continuation setup formed when the price consolidates upward in a parallel channel after a sharp downward move.

In Bitcoin’s case, the flag began forming after BTC bottomed at nearly $103,100 on May 31. The consolidation persisted over the weekend, with the price continuously retesting the support line of the flag.

The bearish continuation will be confirmed once the price breaks below the lower boundary of the flag at $104,800. The pattern’s projected downside target is now sitting near $97,690, measured after adding the height of the initial flagpole to the breakout point.

Momentum indicators, including the relative strength index (RSI) , are also supportive, with the RSI currently at 44, suggesting that the market conditions still favour the downside.

Watch these Bitcoin price levels in June — Traders

Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD pair has dropped 6.3% from its all-time highs above $111,000. 

While BTC price closed 11% higher in May, traders are questioning which direction the price might take moving forward. The month of June has historically produced mixed results with an average of 0.3% losses.

For crypto analyst Daan Crypto Trades, the mid-range at $99,600 and the previous all-time high at $108,000 are crucial levels to watch during the first week of June. 

“I think there’s a good chance that the first week is likely a move that can be faded upon seeing the first signs of local reversals” at either of these points, the trader said in a June 1 post on X.

Related: Bitcoin $200K ‘obvious’ breakout, GameStop’s first BTC buy: Hodler’s Digest, May 25 – 31

An accompanying chart showed that a break above $108,000 would see the BTC/USD pair rise toward its $111,900 all-time high , where it would likely meet strong resistance, occasioning a drop back into the range.

Similarly, a break below $99,600 would see the pair drop lower before finding solace from the 200-day simple moving average at $97,600. 

“No strong bias toward either direction here, so will just remain nimble and play with what I get.” 

“BTC looks like it has started a larger correction, which is likely to take it into the 2nd week of June,” said fellow analyst AlphaBTC in a June 2 post on X.

According to the analyst, a breakdown of the bear flag in the four-hour timeframe could see Bitcoin’s price drop toward the $102,000 demand zone. Losing this support would bring the yearly open above $92,000 into the picture.

“The question will be what happens at around 92K?” AlphaBTC asked, adding that if it provides a buying opportunity, BTC could rebound from here to initiate a sustained recovery into price discovery.

Conversely, if tariff tensions continue , BTC may drop further toward $85,000, as shown in the chart below.

As Cointelegraph reported , Bitcoin traders are analysing the weekly and monthly closes for cues as to where BTC price action may be headed next, with the psychological levels at $100,000 and $97,000 remaining key areas of interest.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.