BTC Price Breaks Below Bear Flag Pattern — $98,000 Next?

In a February 1 post on X, popular crypto pundit Ali Martinez shed light onto an interesting flag pattern the Bitcoin price has been trading inside.

The price of Bitcoin (BTC) has shown some resilience above the $100,000 level in recent weeks. However, a prominent analyst on the social media platform X has come forward with a worrying prediction for the premier cryptocurrency.

According to the analyst, the BTC price is likely to drop below the $100,000 mark over the coming days. This prediction is based on the formation of a bear flag pattern on the 30-minute Bitcoin price chart.

A bear flag is a pattern used in technical price analysis characterized by an almost vertical price drop (flagpole) followed by a brief consolidation period. This technical analysis is an inverse of the more popular bull flag pattern, which typically suggests a continuation of an upward trend. A bear flag, on the other hand, indicates that a price downtrend is likely to persist.

Typically, the upper and lower boundaries of the consolidation range in the flag pattern act as resistance and support, respectively. Hence, it is essential to wait for a successful break beneath the consolidation for the confirmation of the bearish signal.

As shown in the above chart, the BTC price has broken beneath the lower boundary and could be on its way to $98,200. According to Martinez, this bearish setup could be invalidated if the premier cryptocurrency jumps towards $102,800.

While dropping to 98,200 doesn’t bode well for the bullish case of Bitcoin, the market leader still stands a chance at recovery from this level. However, investors might need to watch out for the $97,190 zone just beneath it.

Martinez noted in another post on X that the $97,190 region is one of the most crucial support levels for Bitcoin price based on investors’ cost basis. With over 1.45 million addresses purchasing 1.36 million BTC at this level, holding above $97,190 could prove pivotal to sustaining the bull market.

At the time of writing, the price of BTC is trading just beneath the $100,000 mark, reflecting an almost 2% decline in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is down by over 4% on the weekly timeframe.