Bitcoin Bearish Flag Signals Possible 30% Drop if $63,000 Support Breaks

Bitcoin is trading near $63,992 after falling more than 4% in 24 hours, as analysts warned that a key support level may decide its next move. Experts are now warning that if the token breaks below the $63,000 support level, it could lead to a sharp decline.

The cryptocurrency market value recorded a 24-hour trading volume of $41.44 billion. Data showed continued volatility as traders reacted to chart signals and dominance trends.

Bitcoin Bearish Flag Signals Risk Below $63,000

Crypto analyst Crypto Patel posted a warning about a possible bearish flag breakdown. He noted that if BTC breaks below $63,000, it could see a massive crash to $45,000. This potential drop would amount to a 30% decrease, which could send shockwaves through the cryptocurrency market.

As of the time of writing, the asset is currently trading at $63,992, having experienced a 4.28% drop in the past 24 hours. Price action hovered just above the $63,000 level, which traders now watch closely. A confirmed move below this area may increase selling pressure. The projected target of $45,000 represents a drop of about 30% from current levels.

A bearish flag pattern often forms after a sharp decline, and it signals a possible continuation lower. Traders monitor volume and support zones to confirm the setup. If buyers fail to defend support, the pattern may complete and extend losses.

BTC Dominance Faces Trendline Resistance

In addition to the price concerns, Bitcoin‘s dominance in the market is showing signs of weakness. According to Bitconsensus, asset’s dominance has been consolidating after a downside impulse, adding that Bitcoins dominance is still capped below a long-term descending trendline.

This behavior mirrors patterns seen in 2021 before Bitcoin‘s dominance weakened further. If this pattern continues, it could signal further struggles for the asset in the near future. As the asset dominance weakens, other cryptocurrencies might start gaining ground, making the market less reliant on Bitcoin’s performance.

Bitcoins next move now depends on whether the $63,000 support holds or fails. Traders are watching both price and dominance charts as the market reacts to ongoing selling pressure and shifting sentiment.