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The analyst, who shares insights with over 115,000 followers on X, is observing signs of technical weakness as BTC struggles to hold above critical resistance near $106,600.
Bear Flag Pattern Points to $97K–$98K Range
Bennett suggests that Bitcoin is forming a bearish flag pattern—a technical formation that often signals further downside after a failed relief rally. He highlights Bitcoin’s rejection at the April trendline and its failure to reclaim $106,600 as warning signs.
Based on his analysis, the $97,000–$98,000 range appears to be a realistic downside target, while a move above $106,600–$106,800 would invalidate the bearish setup.
Stock Market Correlation Remains the Wildcard
Despite the bearish structure, Bennett believes that Bitcoin’s trajectory may still be influenced by broader equity markets. Historically, BTC has shown a strong correlation with U.S. stock indices, particularly during times of heightened market momentum.
He points out that without a significant pullback in equities, a major correction in Bitcoin may not materialize, suggesting that the macro environment remains a critical factor in the short-term outlook.
Whale Activity Indicates Growing Bearish Pressure
Further supporting his cautionary view, Bennett references the Whale vs. Retail Delta (WRD) indicator developed by Hyblock Capital. This metric tracks the behavior of large investors compared to retail participants.
The indicator had been trending sideways to slightly higher, but has recently started to move lower again. This shift implies that whales are increasing their short exposure to Bitcoin, a trend historically linked to broader market declines. Given whales’ track record of more accurate positioning, this development adds further weight to the bearish outlook.
The post Bitcoin Bear Flag? Analyst Justin Bennett Warns of Potential Drop to $97,000 appeared first on Coindoo.
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