Key Points:
A bearish flag pattern appearing on the four-hour chart suggests that Bitcoin's price may drop to $97,000.
Traders indicate that if key support levels are breached, including the psychological level of $100,000 and the year-to-date opening price of around $92,000, Bitcoin's price could fall as low as $85,000.
Bitcoin's price is forming a classic bearish pattern on shorter time frames, raising concerns in the market that a breakout could lead to a decline to the $97,000 level.
On the four-hour chart, Bitcoin has formed a textbook bearish flag pattern, which is a continuation pattern that typically forms after a sharp price decline and consolidates upwards within a parallel channel.
In Bitcoin's case, this flag pattern began after it bottomed out at around $103,100 on May 31. This consolidation persisted throughout the weekend, with the price repeatedly testing the support line of the flag.
Once the price breaks below the lower boundary of the flag at $104,800, this bearish continuation pattern will be confirmed. The downside target price for this pattern is now around $97,690, calculated by adding the initial flagpole height to the breakout point.
Momentum indicators, including the Relative Strength Index (RSI), also support this view, with the current RSI value at 44, indicating that market conditions still lean towards a downward trend.
Data from Cointelegraph Markets Pro and TradingView shows that the BTC/USD trading pair has retraced 6.3% from its historical high of over $111,000.
Although Bitcoin's price rose 11% in May, traders are questioning the future direction of the price. Historically, June has shown mixed performance, with an average loss of 0.3%.
Cryptocurrency analyst Daan Crypto Trades believes that the mid-range area of $99,600 and the previous historical high of $108,000 are key price levels to watch closely in the first week of June.
"I think the price action in the first week is likely to provide counter-trend trading opportunities when the first local reversal signals appear at these two points," the trader stated in a post on the X platform on June 1.
His accompanying chart shows that if the BTC/USD trading pair breaks above $108,000, the price will rise towards the historical high of $111,900, but may encounter strong resistance, causing the price to retreat back into the range.
Similarly, if it breaks below $99,600, the trading pair will continue to decline until it finds support at the 200-day simple moving average around $97,600. "I have no strong preference for either direction, so I will remain flexible and respond according to market conditions."
"Bitcoin seems to have initiated a larger-scale correction that may last until the second week of June," analyst AlphaBTC stated in an article on the X platform on June 2.
According to this analyst, the breakdown of the bearish flag pattern in the four-hour time frame could lead Bitcoin's price to the demand area around $102,000. If this support level is lost, the year-to-date opening price above $92,000 will become the market focus.
"The key question is what will happen around $92,000?" AlphaBTC asked, noting that if this level provides a buying opportunity, Bitcoin could rebound from there, initiating a sustained recovery into a new price discovery phase.
Conversely, if tariff tensions persist, BTC may further decline to $85,000, as shown in the chart below.
According to Cointelegraph, Bitcoin traders are analyzing weekly and monthly closing data to find clues about the next direction of Bitcoin's price, while the psychological levels of $100,000 and $97,000 remain key areas of market focus.
Related: ARK 21Shares Bitcoin (BTC) ETF to split shares to attract retail investors
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) Price Key Levels Warning: Bear Flag Breakdown May Target $97K”
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