Bitcoin’s Dip: A Bearish Outlook?

Bitcoin’s been holding steady above $100,000 lately, despite some market jitters. But one analyst has a gloomy prediction.

A Bearish Flag Pattern?

A popular crypto analyst, Ali Martinez, spotted a “bear flag” pattern on Bitcoin’s 30-minute chart. This pattern, basically a sharp price drop followed by a period of sideways movement, often signals a continuation of the downward trend. In simpler terms: it suggests Bitcoin might fall further.

Martinez believes this could push Bitcoin below $100,000, potentially down to $98,200. The pattern’s “flag” represents a period of consolidation; a break below the lower boundary of this consolidation confirms the bearish signal. In this case, the break has happened.

Potential Recovery?

However, there’s a chance of recovery. If Bitcoin jumps to $102,800, it could invalidate this bearish prediction. Even if it dips to $98,200, it’s not necessarily game over. But investors should keep an eye on a crucial support level around $97,190.

A Key Support Level

Martinez points out that a huge number of Bitcoin holders bought around $97,190. Holding above this level is vital for Bitcoin to stay bullish. If it breaks below this level, the situation could worsen.

Bitcoin’s Current State

At the time of writing, Bitcoin is trading slightly below $100,000, down about 2% in the last 24 hours and over 4% for the week.