Bitcoin Bear Flag Pattern Points to $67K as Spot Demand Declines

Summary:
Bitcoin faces a potential drop due to reduced spot buying and diminishing demand for exchange-traded funds (ETFs). The formation of a bear flag pattern on the daily chart indicates a target price of $67,000 for BTC.

Key Takeaways:

A significant decline in spot buying and weaker ETF demand suggests limited upward movement for Bitcoin.
Bitcoin's bear flag pattern indicates a target price of $67,000.

Bitcoin's bear flag pattern indicates a target of $67K amidst slumping BTC spot demand

Possible Price Bottom at $66,000

The BTC/USD pair has established a bear flag on the daily chart, as illustrated below. This pattern emerged after Bitcoin's fall from its $107,000 peak on November 11, with a recent attempt to rise being thwarted near the flag’s upper boundary around $93,000.

Related: Bitcoin retail inflows to Binance "collapse" to a record low of 400 BTC in 2025.

A daily candlestick closing below the flag's lower boundary at $90,000 could trigger a drop towards the pattern's target of $67,380, close to the 2021 price peak. This would signify a 25% decline from the current price.

BTC/USD daily chart. Source: Cointelegraph | TradingView

Trader Roman stated, “Indicators (MACD and RSI) were extremely oversold, and this movement allows them to cool off so we can continue our downtrend,” commenting on Bitcoin's consolidation within the flag.

Pseudonymous analyst Colin Talks Crypto noted that while a downward movement is expected as the flag aligns, he believes the $74,000-$77,000 range would likely serve as the bottom.

Crypto trader Aaron Dishner predicted that BTC price might first revisit $92,200, then approach $98,000 beneath the upper bear flag line, before continuing its downward trend.

1/ Bitcoin almost tested its first resistance fan level yesterday.
It remains inside its bear flag and is likely to retest support around $86k-$87k.
If Bitcoin rallies, it will encounter resistance at $92,216 and near $98k beneath the upper bear flag line.
Volume remains too weak to push prices higher.

— Aaron Dishner (@MooninPapa)

As previously reported by Cointelegraph, Bitcoin's inability to retest the yearly open above $93,000, largely due to macroeconomic uncertainties and stagnant ETF flows, has caused many traders to pull back on their investments.

Declining Demand Poses Risks for Bitcoin

The potential for Bitcoin to surpass the yearly open over $93,000 appears limited because of the lack of buyers.

Bitcoin’s spot cumulative volume delta (CVD)—an indicator that tracks the net difference between buying and selling volumes on exchanges—has shown negative net spot buying even after Bitcoin's recent recovery.

Glassnode's latest Market Impulse report highlighted that Bitcoin’s Spot CVD weakened from -$40.8 million to -$111.7 million in the past week, indicating heightened sell pressure.

Bitcoin spot CVD. Source: Glassnode

Last week, demand for Bitcoin ETFs declined sharply, transforming a $134.2 million inflow into a $707.3 million outflow, according to market intelligence reports. Furthermore, additional outflows totaling $60 million occurred on Monday.

🇺🇸 ETF FLOWS: ETH, SOL, and XRP spot ETFs recorded net inflows on December 8, while Bitcoin spot ETFs experienced net outflows.

BTC: -$60.48M
ETH: $35.49M
SOL: $1.18M
XRP: $38.04M

— Cointelegraph (@Cointelegraph)

Cointelegraph reported that Bitcoin’s recent price bounce might be a bull trap, with some analysts forecasting a drop to as low as $40,000 in the near future.