Bitcoin (BTC) is showing concerning technical patterns that could signal a significant short-term price decline, according to multiple market analysts. Despite recovering from recent dips to the $60,000 region, the cryptocurrency faces renewed downside risks.
Market analyst Yashu Gola highlights that Bitcoin's daily chart has formed a classic bearish flag pattern. This pattern typically develops after a sharp price drop—known as the "flagpole"—followed by consolidation within converging trend lines, and often culminates in another downward move of similar magnitude to the initial drop. For Bitcoin, this formation began after the sharp decline to $60,000.
Gola warns that a clear break below the lower boundary of this flag pattern could push Bitcoin down approximately 20% from its current February levels, potentially reaching as low as $56,000. Conversely, a breakout above the upper trend line at $72,700 would invalidate the bearish setup.
Adding to the technical concerns, on-chain data from CryptoQuant reveals increased selling pressure from large holders. Bitcoin's whale inflow rate (seven-day average) has surged to a record high of 0.619, compared to 0.40 at the beginning of the month. This metric typically indicates heightened selling activity by whales when it rises.
Further analysis of the 4-hour chart shows Bitcoin trading at a precarious position near $67,000, falling underneath the bottom trendline of a triangle formation. If this breakdown continues, the next support level sits at $65,500, with the measured move out of the triangle potentially taking the price below $60,000.
The daily chart reveals what appears to be a bear pennant formation, which analysts consider likely to break down given that Bitcoin has recently lost major horizontal support. The Stochastic RSI in the daily timeframe is also turning downward, reinforcing the bearish outlook.
While the weekly chart shows a significant tail down to $60,000 that could provide some hope for bulls, analysts note that back-filling this long tail remains a valid possibility. The full measured move out of the bear flag pattern could potentially target $53,000.
The only scenario that could reverse the bearish sentiment would be a weekly candle close back above $69,000, but analysts question the likelihood of this occurring given current market conditions.
