Bitcoin Bear-Flag Breakdown Confirmed as DXY Drops — $86k Support in Focus
Bitcoin (BTC) appears to have confirmed a bear-flag breakdown after recent price action touched and rejected the flag’s lower trendline. Short-term momentum indicators (up to the 12-hour) are topped out and suggest a likely reversal lower. Key horizontal support sits at $86,000 — a level with multiple historical touches on the weekly chart — and a break below it would make $80,000 the near-term target, with potential further declines to $74,000 and $69,000 if selling accelerates. Conversely, the US Dollar Index (DXY) is breaking a multi-year uptrend (dating to 2008) and falling toward multi-year lows; a weaker dollar and expectations of Fed rate cuts later in 2026 could provide tailwinds for Bitcoin and other risk assets. Traders should watch: confirmation of the DXY breakdown, whether BTC re-enters the bear flag or closes back above the firmer uptrend line, and the $86,000 level for signs of a shallow bounce or a deeper measured move down to ~ $80,000 (or lower). Key keywords: Bitcoin, bear flag, DXY, USD, $86,000 support, measured move, FOMC, Powell, rate cuts.
Bearish
The article describes a confirmed bear-flag breakdown on BTC’s charts with short-term momentum topped out and a failed attempt to remain inside the flag, which historically signals further downside. The key $86,000 horizontal support has held repeatedly but is vulnerable: a close below it would validate a measured move toward $80,000 and possibly $74k–$69k if selling continues. Although DXY weakness and potential Fed rate cuts are bullish macro factors for risk assets, they are not yet strong enough to negate the technical breakdown. For traders this implies higher probability of short-term downside (opportunities for short positions or tightening stops on longs) unless BTC reclaims and holds above the firmer uptrend line and the bear flag. Similar scenarios in past cycles (flag breakdown leading to measured moves to prior major support levels) resulted in sharp, multi-week drawdowns before macro-driven recoveries. Therefore the near-term bias is bearish, while longer-term direction depends on DXY trajectory and Fed policy shifts.