Bitcoin Price May Drop 6% to $97,690 as Bear Flag Forms

Bitcoin’s price is currently forming a bear flag pattern on the four-hour chart, which is a classic bearish continuation setup. This pattern is formed when the price consolidates upward in a parallel channel after a sharp downward move. In this case, the flag began forming after Bitcoin 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 favor the downside.

Traders are closely watching key levels in June. The mid-range at $99,600 and the previous all-time high at $108,000 are crucial levels to keep an eye on during the first week of June. 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.

According to the analyst AlphaBTC, 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. If tariff tensions continue, BTC may drop further toward $85,000. Conversely, if the $92,000 level provides a buying opportunity, BTC could rebound from here to initiate a sustained recovery into price discovery.

Bitcoin traders are analyzing 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. 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.