Bitcoin Price Levels to Watch as Bear Flag Breakdown Targets $97K

Bitcoin has pulled back sharply, falling 11% from its recent all-time high of $111,000, and traders are watching key technical levels as the market braces for a potential correction to $97,000 — or even lower — if critical supports fail.

Bear Flag Pattern Suggests $97,000 Target

On the four-hour chart, Bitcoin’s price action has formed a classic bear flag — a bearish continuation pattern that typically forms when the price consolidates upward in a parallel channel after a sharp decline.

This flag began developing after Bitcoin bottomed near $103,100 on May 31. Over the weekend, the price continued to consolidate, frequently retesting the lower boundary of the flag.

A decisive break below the flag’s support line at around $104,800 would confirm the bearish continuation, pointing toward a projected downside target near $97,690. This target is calculated by measuring the height of the initial flagpole and applying it to the breakout point.

Momentum indicators, such as the Relative Strength Index (RSI), are currently signaling further weakness. With the RSI sitting at 44, the market still appears to favor a downward move.

BTC/USD four-hour price chart. Source: TradingView

Key Bitcoin Levels to Watch in June

Data shows that Bitcoin has dropped 6.3% from its all-time highs, despite closing May with an 11% gain. Now, attention turns to June, a month that historically has delivered mixed results, averaging about 0.3% in losses.

For traders, the $99,600 mid-range and the  previous all-time high of $108,000 stand out as crucial levels to monitor in early June. According to crypto analyst Daan Crypto Trades, these levels could serve as key inflection points where local reversals might occur.

“If we see reversals near these points, they could offer strong trading opportunities,” the analyst noted, adding that a break above $108,000 would open the door for a retest of the $111,900 all-time high — though strong resistance is expected there.

On the downside, losing $99,600 could lead Bitcoin lower, potentially toward support at the 200-day simple moving average (SMA) near $97,600.

Bitcoin monthly returns, %. Source: CoinGlass

Larger Correction Could Extend Into Mid-June

Another analyst, AlphaBTC, suggests that Bitcoin may have already entered a larger corrective phase that could extend into the second week of June.

A breakdown of the bear flag on the four-hour timeframe could push Bitcoin toward the $102,000 demand zone. Should this level fail, attention would shift to the yearly opening price above $92,000.

“The big question will be what happens at around $92,000,” AlphaBTC explained. “If it holds, this could offer a strong buying opportunity and spark a recovery back toward price discovery. But if it breaks, we could see deeper declines.”

BTC/USD daily chart. Source: Daan Crypto Trades

In a worst-case scenario, if global trade tensions continue to escalate, Bitcoin may slide further, with possible downside targets extending toward $85,000.

Summary: Psychological Levels in Focus

As traders monitor the broader market, the $100,000 and $97,000 psychological levels remain critical areas of interest. Bitcoin’s price action over the coming days and weeks will likely hinge on how it interacts with these supports — and whether buyers step in to defend them or allow the market to drift lower.

BTC/USD four-hour chart. Source: AlphaBTC

With volatility picking up, many analysts recommend staying nimble, watching for signs of local reversals, and being prepared for both bullish and bearish scenarios as the June market unfolds.