As Bitcoin trades near its multi-month highs and technical risks increase, analysts warn of possible danger in the form of “bear flag” patterns forming, should prices fail to abide by certain critical support zones and break lower towards approximately $88,000.
Bitcoin (BTC) reached $109,581.00 today after increasing by 1.111% over time (Today through August 6). For context of bear flag risks: (Weibull, Bear Flag Risk Analysis Model and MAX Incorporation.)
Bear flags are technical patterns that often form after sharp upward price movements. After an aggressive rise, assets pull back or consolidate in a narrow range (the “flag”) before continuing their upward momentum and breaking through that consolidation to the downside, often followed by a steep drop roughly equaling its height (a pole). As bitcoin continues its upward momentum, traders fear a breakaway from this flag could trigger swift downward movement if its breakdown occurred during its recent upside momentum.
Although some bullish narratives remain intact, support levels should still be given close consideration.
Key Support Zones to Monitor
Below are three critical supports Bitcoin must adhere to in order to ward off “bear flag” scenarios:
- $98,900 Zone
Recent technical analysis indicates that $98,900 may provide initial support. One market commentary noted: “Bitcoin broke well above its horizontal support at $98,900 which may now become new support.” Likewise, Cryptonary.net noted:
If one level fails to support, the entire structure becomes compromised — making the subsequent supports much more vulnerable. - $93,000-$95,000 Range
In the event that the $98,900 zone gives way, traders often identify a key area between $93,000 and $95,000 as another support zone that has seen buyers step in during past price action. Breaching this range would increase chances of deeper pullback. - The psychological $90K bucket
Although not explicitly referenced in all analyses, $90K remains psychologically and technically significant for Bitcoin’s bull structure. A drop below that threshold could accelerate its breakdown and put $88,000 support region into view; in fact, previous commentary indicates that losing support around $90-91K makes a drop to $73,000 possible. MarketWatch
