Is Bitcoin price forming a bear flag at $66,900 as its daily MACD reaches its deepest negative reading in months?

Bitcoin is holding just above a broken support level at $66,900 as a potential bear flag forms on the 4H chart and the daily MACD hits one of its most negative readings of the current cycle, raising the risk of a move toward $63,000 heading into a low-liquidity Good Friday weekend.

Bitcoin (BTC) is trading at $66,891 on April 3, 2026, holding just above what was previously a horizontal support level at $66,188 after declining from a March high near $76,000. The daily Supertrend indicator sits at $74,093, positioned well above the price in red, confirming the dominant bearish regime. Volume on the daily chart spiked sharply during the most recent leg lower, a pattern broadly consistent with forced selling rather than orderly distribution.

On the 4H chart, price has formed a small ascending channel since the most recent intraday low, with the current close near $66,891 printing just above the 4H Supertrend support at $65,549. This short-term structure appears tentatively constructive on the 4H, but it sits inside a much larger downtrend, raising the probability that it is a bear flag rather than a genuine reversal.

A bear flag is a brief, shallow recovery that forms within a downtrend before the next leg lower. The 4H ascending channel on the Bitcoin chart fits this description: price is recovering at a modest angle, and the MACD histogram on the 4H remains deeply negative at -169, with the MACD line at -203 compared to a signal of -33. There is no bullish crossover on the 4H MACD, and the histogram continues to expand in the red.

On the daily chart, the MACD readings are more extreme. The MACD line stands at -862 against a signal of -223, producing a histogram of -639. Investtech’s technical assessment for April 3 notes that Bitcoin “has broken the floor of the rising trend channel in the short term” and broken through support at $67,300, concluding that “this predicts a further decline.” The 50-day SMA at approximately $69,089 and the 200-day near $70,280 both sit above current price in declining trajectories, providing stacked resistance on any attempted recovery.

Key Levels, Price Targets, and Invalidation

Immediate support sits at $65,549, the current 4H Supertrend reading. A 4H close below this level would likely accelerate the move toward $63,000-$64,000, the next major support region from early 2026 price history. A deeper breakdown below $60,490 targets $54,000, according to technical analysis published by CoinDCX.

Resistance to the upside: the broken $66,188 level is now a resistance flip. The upper boundary of the 4H ascending channel near $68,400, which also aligns with the 4H Supertrend bear line, is the first meaningful ceiling. A confirmed daily close above $68,400 would neutralize the bear flag thesis and open a relief rally toward $70,000.

Options Expiry and Market Context

Around 27,600 Bitcoin options contracts expired on April 3 with a notional value near $1.8 billion and a max pain level of $68,000, according to data from Coinglass. The put/call ratio near 0.55 shows slightly more calls than puts expiring, but with price trading below max pain, an options-driven bounce faces an uphill battle.

As crypto.news reported, Bitcoin fell over 4% to $66,250 on April 2 as escalating U.S.-Iran tensions pushed oil above $100 and triggered more than $420 million in leveraged liquidations across the market. CME futures are closed today for Good Friday, removing institutional demand and liquidity at a critical juncture.

CoinDCX’s research team noted that “a sustained daily close of the $67,500 support zone” is required for a 5-7% April recovery toward $72,000 to remain viable. A failure to reclaim that level into next week, combined with the deeply negative daily MACD, places $63,000 as the most likely next directional target.