Key Takeaways
- Bitcoin’s price has recovered from its brief dip, with a bullish flag pattern on the 4-hour chart.
- While technical indicators are strong, a CryptoQuant analyst warns that demand remains weak.
- BTC forms an ascending triangle on the daily chart with higher lows and resistance at $112,062.
After briefly dipping below $100,000 last week, Bitcoin (BTC) is back on the rise, up nearly 6% over the past seven days and inching closer to retesting its all-time high.
Some market participants are still wary, calling the bounce a possible fakeout. However, the charts tell a different story.
In this analysis, we break down what’s fueling Bitcoin’s momentum and what could come next.
Bitcoin Breakout Looms
Bitcoin’s price has carved out a bullish flag pattern on the 4-hour chart, signaling potential upward momentum. The pattern emerged after a sharp climb from $96,968 to $107,699, forming the flagpole.
Subsequently, BTC consolidated within a tight range of $106,800 to $108,564, shaping the flag. Despite a minor dip, the price is now testing the channel’s upper trendline, as illustrated in the chart below.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
DISCLAIMER:
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
DISCLAIMER:
Don’t invest unless you’re prepared to lose all the money you invest.
The Chaikin Money Flow (CMF) has consistently risen amid this setup. The rise in the CMF reading indicates increasing buying pressure.
Likewise, the Relative Strength Index (RSI) is below the neutral line, indicating bullish momentum. If sustained, this could drive Bitcoin’s price higher than $110,000, the next major psychological resistance.
Despite the bullish technical setup, on-chain analysis from pseudonymous CryptoQuant analyst Crazzyblockk shows that Bitcoin’s demand is weak.
Analysts Divide Despite On-Chain Support
According to the analyst, the new demand for BTC has failed to absorb the supply.
Hence, Bitcoin’s apparent demand has turned negative. He further added that this imbalance could make a sustained rally a struggle.
“Consequently, the market is in a vulnerable state. Any price rallies from here will likely struggle to overcome this wave of available supply, and market support may be weaker than anticipated,” The analyst wrote .
Unlike the CryptoQuant analyst, Ray Youssef, CEO of NoOnes, opined that Bitcoin’s price could be in line for a higher value after last week’s geopolitical tension.
“The Bitcoin bounce feels more like the market exhaling after a period of sustained tension and volatility, marking a technical recovery,” Youssef told CCN in an exclusive conversation.
Looking at the In/Out of Money Around Price (IOMAP), CCN observed that the BTC has strong support between $104,429 and $107,637.
At this price range, over 2 million Bitcoin addresses actively purchased 1.54 million coins, holding unrealized profits. This volume exceeds the activity between $107,784 and $110,624.
With this substantial support, Bitcoin’s price will likely break through resistance and retest its all-time high.
BTC Price Prediction: Higher Lows, Higher Stakes
Like the signs on the 4-hour timeframe, the daily BTC/USD chart also presents a bullish outlook. As seen below, Bitcoin’s price trades in an ascending triangle, forming higher lows with stable support approaching $112,062.
The Awesome Oscillator (AO) has risen to the positive region, indicating bullish momentum around the coin. If this trend continues, Bitcoin’s price might retest its all-time high.
This time, it could close in on $120,000. On the contrary, if momentum turns bearish and BTC fails to breach overhead resistance, this might not happen.
If that is the case, then BTC price might slide to $99,520 at the 0.382 Fibonacci level. The market value might decline to $91.761 in a highly bearish scenario.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful?
