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Bitcoin’s Critical Price Risk ‘Flag’ged — Here’s Why a 25% Dip Could Be Possible

BeInCrypto
Bitcoin faces a potential 25% dip due to a forming bear flag pattern, rising short-term holder supply, and high long liquidation risk.

Summary

Bitcoin, currently trading near $91,000, is exhibiting clear risk signals suggesting a potential 25% price drop. Technically, a large bear flag pattern is forming following a sharp drop between November 11 and 21; if the lower trendline breaks, the move could mirror the prior 25% decline.

This technical warning is reinforced by on-chain and derivatives data. The supply held by short-term holders has increased by nearly 10% to a six-month high, indicating more low-conviction coins ready to sell quickly. Furthermore, derivatives positioning shows significant risk, with approximately $2.24 billion in long liquidations stacked below the current price versus only $536 million in shorts above, meaning a breakdown could trigger a forced long squeeze.

The critical price levels are $89,100, a break below which confirms the flag breakdown and opens the squeeze zone, with support near $80,500 and a full extension target toward $66,600. Conversely, a move above $95,900 would negate this risk and suggest a potential rally toward $107,400.

(Source:BeInCrypto)