Bitcoin Could Fall Even Further According To Bearish Flag Pattern

The unexpected crash in the price of Bitcoin (BTC) to $91,000 was driven by decreasing market dominance and rising volatility. Despite this setback, one analyst envisions an even more pessimistic future for the leading cryptocurrency. The emergence of a bearish flag pattern points to possible further declines, with some predicting a deeper plunge toward $90,000.

Further Drops Expected

Pejman Zwin, a crypto analyst on TradingView, shared a chart analysis forecasting a notably negative outlook for Bitcoin. This grim prediction is based on the formation of a bearish flag pattern alongside other crucial technical indicators. According to Zwin, this chart formation often indicates a continuation of a prior downtrend. If this pattern holds, Bitcoin might soon break downward, leading to substantial price drops.

Zwin pointed out that the 50-day Moving Average (MA), currently near $95,970, has acted as a significant resistance or support level for Bitcoin. Recently, however, the flagship cryptocurrency dipped below this MA, marking a bearish development and suggesting further declines.

The analyst also noted that Bitcoin is situated within a robust support zone ranging between $95,000 and $90,870. He stressed that the cryptocurrency is breaking through essential support lines, which could signal an ongoing downward trend.

Need For Caution

Given the current technical indicators and chart patterns, Zwin anticipates a considerable price drop toward $91,000. The analyst emphasized that a move to $91,000 is the minimum expected, occurring if Bitcoin breaks through its current support levels.

Zwin also mentioned that if the heavy support zone is breached, Bitcoin might experience additional bearish pressure, potentially revisiting lower levels around $90,540. His bearish prediction follows a recent decline to $91,000 on Monday, with the market sentiment of BTC weakening and its price action showing no signs of slowing.

While the analyst predicts a bearish trend for Bitcoin, he also outlined a potential bullish scenario. Zwin suggested that if Bitcoin were to break above the resistance at $95,974, it could invalidate the bearish flag pattern and trigger a reversal, paving the way for an upward movement.