Bitcoin's New Year Bear Flag: Will It Ignite a Surge to $76,000 for BTC?

Bitcoin's recent price action has traders eyeing a potential "bear flag" pattern, sparking debate about a possible dip towards $67,000, while some analysts maintain a bullish outlook with targets as high as $76,000.

Bear Flag Formation and Potential Downside

Several analysts have pointed out a bear flag formation on Bitcoin's daily chart. This pattern, which typically follows a sharp decline, suggests a potential continuation of the downtrend. The bear flag formed after Bitcoin dropped from its November highs around $107,000, and a recent rebound was rejected near $93,000. A daily close below the flag's lower boundary, around $90,000, could trigger a drop towards the pattern's target of $67,380. This target aligns with the 2021 price top. Trader Roman noted that indicators like MACD and RSI were extremely oversold, suggesting a need for consolidation before a continued downtrend.

Aksel Kiber, CMT, noted that Bitcoin's volatility has slumped near $90K, raising concerns of a bear flag price pattern. The on-chain data indicates that the drop in Bitcoin's volatility has triggered speculations among the market participants.

Conflicting Views and Potential Rebound

Despite the bearish signals, some analysts anticipate a potential rebound. Pseudonymous analyst Colin Talks Crypto suggested that the $74,000-$77,000 zone would be a likely bottom, anticipating a powerful rebound if that level is reached. Crypto trader Aaron Dishner suggested that Bitcoin could revisit $92,200 and then $98,000 before continuing any downtrend.

Other analysts suggest that key support zones between $80,000 and $82,000, with deeper support at $76,000, may help stabilize BTC and provide a foundation for upward momentum.

Technical Indicators and Market Sentiment

Technical indicators present a mixed picture. Some sources indicate bearish signals in Bitcoin's four-hour chart, with the 50-day moving average sloping down, suggesting a weakening short-term trend. The 200-day moving average has also been falling since early December 2025, indicating a weak longer-term trend. However, on the weekly timeframe, Bitcoin appears bullish.

The Fear & Greed Index is displaying a score of 29, indicating fear in the market. Over the last 30 days, Bitcoin has had 40% green days and 5.24% price volatility.

Potential for a Bullish Correction

Despite the current bearish sentiment, some analysts foresee a potential bullish correction. FOREX24.PRO anticipates an attempt at a bullish correction, testing resistance near $95,275. Moving averages indicate a short-term bullish trend, with prices breaking above signal lines.

Long-Term Outlook

Long-term predictions for Bitcoin remain largely positive. Some analysts expect Bitcoin to head towards the $120,000 - $130,000 range by late 2025 if macroeconomic conditions remain favorable. Factors such as ETF inflows, regulatory clarity, and macroeconomic conditions are expected to drive Bitcoin's price.

One analysis suggests a potential 22-23% rise, targeting $111,500 by December 2025, driven by improving investor sentiment, macroeconomic support, and supply limitations. Another source projects Bitcoin's value to increase by 5%, potentially reaching $92,936.58 in the next 30 days.

Key Levels to Watch

Immediate resistance is noted at yesterday's high of $92,216, followed by the upper bear flag line near $98,000. Support resides around $86,000–$87,000. A decisive breakdown below $85,000 could lead to a slide towards $76,000.


Written By
Aditya Kapoor is a technology and innovation journalist with expertise in startups, AI, and digital policy. He combines analytical writing with storytelling to uncover trends shaping the future of business and technology. Aditya’s deep understanding of the tech ecosystem makes his reporting insightful and relevant. He’s driven by a belief that technology should empower everyone.
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