TLDR
- Bitcoin forms a bear flag, with a potential target of $67K as spot demand weakens.
- Sluggish ETF inflows and negative spot CVD signal softer institutional interest in Bitcoin.
- Bitcoin’s price drop from $107K faces resistance at $93K, with downside targeting $65K.
- Analysts predict Bitcoin could reach $100K if demand rebounds, but $65K is a more likely target for now.
Bitcoin has formed a bear flag pattern on its daily chart, signaling potential downside momentum. This pattern, which has emerged after Bitcoin’s drop from $107,000 on November 11, suggests that BTC could move towards $67,000. Spot demand has weakened, with decreasing buying activity and softer institutional interest. Analysts are now predicting a further decline, with some targeting a possible bottom near $67,000. The market is currently dealing with low spot buying and sluggish ETF demand, which could further limit Bitcoin’s price movement.
Bear Flag Pattern Suggests $67,000 Target
Bitcoin’s recent price action shows the formation of a bear flag on the daily chart. After a sharp decline from $107,000, the price rebounded but faced resistance at the upper boundary around $93,000. The bear flag, typically a continuation pattern, suggests that Bitcoin could drop further if it closes below the flag’s lower boundary at $90,000. If this happens, Bitcoin could move towards its measured target of $67,380, a 25% drop from its current level.
According to trader Roman, the oversold indicators like MACD and RSI signal that the market is cooling off. This consolidation inside the flag allows these indicators to reset, creating the necessary conditions for continued downward movement. Some analysts believe this drop may continue as the flag validates, pointing to a possible price target around $67,000.
Bitcoin’s Bearish Outlook Targeting $65K or $100K?
The bear flag pattern on Bitcoin’s chart suggests that the price could eventually break down, heading toward targets around $65,000. As the bear flag continues to unfold, the price may face downward pressure, with the potential for a sharp decline. However, some traders believe the pattern could also lead to a more limited drop, possibly bottoming near $74,000-$77,000. These levels could act as a temporary support zone before any potential rebound.
A breakdown below the $90,000 level could pave the way for a further drop, possibly reaching the $65,000 level. On the other hand, a larger move could see Bitcoin testing higher levels, with some analysts predicting that Bitcoin could rise to $100,000 or even $105,000, though that would require a significant reversal. Bitcoin’s movement over the coming days will likely depend on market sentiment and whether demand from institutional and retail investors can pick up.
Bitcoin’s Struggles Amid Macro Conditions
The broader macroeconomic environment has also contributed to Bitcoin price struggles. Despite a recent rebound, Bitcoin has failed to retest its yearly open above $93,000. The ongoing uncertainty in the global market, including concerns over liquidity and the economy, has led to lower investor participation. As a result, Bitcoin’s price has been unable to break through key resistance levels, further confirming the bearish trend.
The weakening spot demand and sluggish institutional flows are creating a challenging environment for Bitcoin’s recovery. Some analysts are even predicting that Bitcoin could see a sharp drop, with possible targets as low as $40,000 in the coming months. For now, Bitcoin’s future movements remain closely tied to broader market conditions, with the next major support zone near $67,000.
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