A hawkish Fed. Rising bond yields. Concerns about strategy (MSTR). Bitcoin already has plenty working against it. Now, an ominous chart pattern adds to the uncertainty.
The pattern is called a bear flag, and a breakdown could send the price of the biggest cryptocurrency to as low as $54,000 initially, according to pseudonymous trader Doctor Profit, who called BTC’s bull-market top of $126,000 and the subsequent selloff.
“Bitcoin is now forming a massive bearish flag on the daily time frame,” wrote the trader on X. “My target is a dump to the 54-56k region first before we move sideways again and then another leg down and the bottom is close in the 40-50k region in my opinion.”
Drawn on a diagram, the pattern looks like a flag on a pole that has been turned upside down. Here’s how it works: An asset falls sharply and then sees a relief jump. The slide represents the pole and the jump is flagged. When the price falls below the lower end of the flag, it deepens the selloff, with the downward move roughly the same size as the original decline.
