Bitcoin Analyst Predicts Further Price Decline Following $91,000 Crash
The Bitcoin price recently dropped to $91,000 due to declining market dominance and increased volatility. An analyst predicts further declines, suggesting a bearish flag pattern indicates potential drops towards $90,000.
Bearish Flag Pattern Signal Bitcoin Price Crash
Pejman Zwin, a TradingView crypto analyst, has released a chart analysis indicating a bearish outlook for Bitcoin. This forecast is based on the appearance of a bearish flag pattern and other technical indicators.
Zwin explains that Bitcoin’s movement within a bearish flag pattern suggests a continuation of its downtrend. If this pattern holds, further downward movement is likely.
He notes that the 50-day Moving Average (MA) at approximately $95,974 has acted as a critical resistance level. Bitcoin's recent break below this MA is considered bearish and indicates potential for further decline.
Additionally, Zwin identifies a heavy support zone between $95,000 and $90,870. The breaking of key support lines may signal a continuation of the downward trend.
Based on current technical indicators, Zwin anticipates a price crash toward $91,000 if support lines are breached, with a minimum expected drop to this level. If the support zone fails, Bitcoin could face further declines, potentially revisiting lower levels around $90,540. Following a recent crash to $91,000, Bitcoin's market sentiment has weakened, with bearish trends continuing.
Although Bitcoin experienced a sharp decline, it recovered quickly and is now trading at $93,893. A drop to Zwin's target of $90,540 would represent a decrease of approximately 3.6%.
Alternative Bullish Scenario
Despite his bearish outlook, Zwin presents an alternative bullish scenario. He suggests that if Bitcoin can surpass the resistance level around $95,974, it may invalidate the bearish flag pattern and indicate a potential upward reversal.
Market expert 'Mister Crypto' has also predicted a possible Bitcoin breakout in the coming days, suggesting that Bitcoin may overcome bearish trends and resume its previous upward trajectory.
