Bitcoin’s price is still falling, with a small increase to $78,000 being the only recent exception. A key reason for this decline is that the Bitcoin ETFs are experiencing consistent outflows – they’ve seen net negative flows for the past six days. This makes it difficult to see how Bitcoin can reverse this downward trend.
7th straight day of ETF outflows
Over the past week, U.S. Bitcoin ETFs have seen a little more than 24,000 BTC withdrawn, which is concerning for investors. This could potentially push the price of Bitcoin lower, possibly marking the final drop in this ongoing bear market.
A pattern forming that could take $BTC up to $81K?
Recently, Bitcoin’s price was attempting to rise above a key resistance level, which would have signaled a strong upward trend. However, the price failed to break through and has been gradually decreasing since then.
The price has broken above the recent downward trend, suggesting it may now fall quickly, potentially moving significantly lower after briefly testing the lower boundary of that trend.
Despite recent price fluctuations, a potential bullish pattern is emerging. An inverse head and shoulders formation is developing below the current downward trendline. If the price of Bitcoin rises to touch this trendline, the pattern will be complete. Whether this leads to a price increase or not remains to be seen, but a successful breakout could drive the price up to $81,000, potentially reaching the upper limit of a smaller, existing channel.
$BTC price back in lower half of bear flag
The current chart pattern, a bear flag, shows a clear range between its upper and lower boundaries. Interestingly, the middle of this range is affecting the price just as much as the upper and lower lines that define the flag.
Bitcoin’s price is currently in the lower half of its recent trading range, and it will need a significant price increase from buyers to move back up. The Stochastic RSI indicator suggests a lack of upward momentum on this shorter-term chart, but a longer-term 4-hour chart might show a different picture.
Fibonacci levels predict 2 potential bear market bottoms
If you’re a long-term investor, looking at a monthly chart can be reassuring. Examine the Fibonacci retracement levels across this entire market cycle. Many analysts thought the $60,000 level would be the lowest price for Bitcoin (and it still might be). However, the price didn’t quite reach the 0.618 Fibonacci level, which is typically the minimum we’d expect to see in a major bear market.
Will the price eventually fall to this level? If it does, it would fit the pattern of a double bottom, and could be a good starting point for a new price increase, supported by previous high levels.
Alternatively, will the price fall to the 0.786 Fibonacci level? This level is close to the $40,000 low that many analysts are predicting on social media.
The price action might follow the trend of the monthly Stochastic RSI. If the indicator lines keep rising above 20.00, the price may briefly fall to around $0.618. However, if the lines remain low, like they did throughout 2022, we could see a larger drop to $40,000 and potentially reach the 0.786 Fibonacci level – a significant support area.
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2026-05-27 16:31