Bitcoin's Bear Flag Setup: What's Next for BTC?

Bitcoin is currently exhibiting a bear flag pattern on the daily timeframe, characterized by a sharp downward impulse followed by sideways consolidation in an ascending channel. This corrective phase suggests further downside could be imminent rather than a trend reversal scenario.

Short-Term Price Action

In the near term, BTC is expected to experience a relief bounce before the next leg lower. The $98,000 resistance level represents a critical zone where buyers might face headwinds. This area coincides with major moving averages and the upper edge of the bear flag structure. Should price reject at this resistance, it would strengthen the case for continued bearish pressure.

The Bigger Picture

From a macro standpoint, the technical structure remains decidedly bearish. Once the bear flag completes its breakdown, technical targets point toward $60,000—a level that also coincides with a significant historical support/demand zone. If selling momentum accelerates, this downside target becomes increasingly probable.

Trading Approach

Current price: $91.83K (+1.25%)

Key levels to watch:

• Resistance: ~$98,000
• Bearish target: ~$60,000

The optimal strategy involves patience and discipline. Rather than buying into the current bounce, traders should wait for confirmation of rejection at the upper resistance before positioning for the anticipated continuation lower. This measured approach aligns with the bear flag’s technical implications and maximizes risk-reward potential.