Bitcoin Crashes Out of Bear Flag: Next Downside Target $66K

So the bear flag breakdown has finally happened and the Bitcoin crash is in process. Currently holding support at $70K, the next target for the $BTC price is $66K. As Bitcoin plummets into the final stage of its bear market, will a new bottom under $60K eventually be made?

$BTC price breaks down out its bear flag

Source: TradingView

Things are moving fast for the $BTC price on Tuesday morning. Already attempting to penetrate through the $70K horizontal support, ahead lies $69K, which is the top of the 2021 bull market, so a very important level.

Can the price hold here? There is certainly the possibility. A descending trendline cuts between the $70K and $69K support levels, which may encourage a bounce, while at the bottom of the chart, the RSI indicator line in this 4-hour time frame has fallen to its lowest level since the beginning of this 4-month bear flag. This is probably a much sounder indication of a reversal back to the upside.

The overwhelming advantage that the bears have is the breakdown of this big bear flag. While the $BTC price could return to the underside of the flag to retest and confirm the breakdown, the downside momentum is still likely to return.

Bears pushing to break $70K support level

Source: TradingView

Switching to the daily frame it can be seen that the bears are pushing the $BTC price down. If this band of support (plus the trendline) can be overcome, $66K will be the main support, with the market bottom below that at $60K. If one looks up and to the left, it can be seen how fast the price came down once it broke down out of the previous bear flag. Could the same thing be about to happen here?

Once again, now in the daily time frame, a signal to watch is the RSI indicator line. Here it has just broken below the 30.00 level. The previous low, which was made at the bottom of this bear flag, was only equalled back in the Covid crash bottom of March 2020. 

If $66K support fails, it’s down to the $60K bottom

Source: TradingView

The weekly chart view illustrates what is a clear breakdown out of the bear flag - at least so far. There is still the rest of the week for the bulls to try and save the situation. Unlikely as it looks right now, there is the possibility that this candle could get bought all the way back up and even end the week green. This would be extremely bullish, especially if the candle closed above the $73,660 horizontal resistance, turning it into support once more.

All that said, this scenario is probably akin to grasping at straws right now. If the price can penetrate below the $70-$69K support, and then also $66K, there would not be much to stop the $BTC price falling to $60K and below.

Another big U.S. Spot Bitcoin ETF outflow of 6.57K BTC on Monday shows where sentiment is, and that’s heading down fast. The price is likely to follow suit, although as already mentioned, there could be a quick reversal back to the upside in order to confirm the breakdown. If one looks at the previous 3 big pattern breaks, a retest happened in 2 of them before price continued to the up or downside.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.