Bitcoin Bear Flag Warns of Drop to $88K as Key Support Levels Loom
Bitcoin price has formed a bear flag on the daily chart following its fall from a $126K all-time high, flagging a potential 19% sell-off to $88,100 if the $107,500 support level breaks. Momentum indicators such as the RSI at 42 underscore the bearish bias, while on shorter timeframes a similar pattern points to an immediate drop toward ~$98,000. Glassnode’s supply quantile cost basis model warns that slipping below the $108,600 quantile could accelerate Bitcoin price losses toward $97,500. Traders highlight key support at $111,000 and $107,000; a daily close under these zones could open the path below the $100,000 mark. Conversely, reclaiming and holding above $111,000 may restore bullish momentum and invalidate the bear flag setup. Market participants are closely monitoring these support levels to gauge the next significant move in Bitcoin price.
Bearish
The emergence of a bear flag on Bitcoin’s daily chart, combined with RSI at 42 and key support levels under pressure, signals increased selling momentum in the short term. If Bitcoin fails to hold $107,500 or $111,000, traders may accelerate sell-offs, pushing price toward $100,000 or lower targets like $97,500–$88,100. On-chain data from Glassnode further supports a bearish outlook, as breaching the $108,600 cost basis quantile suggests broader capitulation. While reclaiming above $111,000 could mend sentiment, current technical and on-chain indicators favor downside risk. Over the long term, sustained breaks below critical supports could undermine confidence, leading to extended bearish trends absent new positive catalysts.