Recently, Bitcoin has shown price fluctuations but failed to hold after breaking the bull flag, indicating potential short-term instability.
Understanding the Bull Flag Fakeout
Recent price action demonstrated Bitcoin seemingly breaking out of a classic bull flag pattern on the daily chart. Typically, this indicates a continuation of an existing bullish trend. However, in this instance, BTC failed to hold above the resistance level, indicating a bull flag fakeout. This failure raises concerns about potential short-term weakness and trader shakeouts.
Is Another Rise for Bitcoin Possible?
Despite the initial breakdown, hope is not lost. If Bitcoin regains its upside momentum, the next target zone could lie between $100,700 and $102,700. This range represents a logical resistance cluster, previously marked swing highs and volume-weighted average price levels aligning with potential profit-taking areas.
What to Watch Next
1. Reclaim of Flag Resistance
A meaningful close above the upper boundary of the bull flag—ideally on a daily candle basis—would signal renewed strength. Watch for increased volume confirming any breakout attempt.
2. Momentum Indicators
Oscillators like MACD or RSI maintaining bullish bias and potential 'golden crosses' could support bullish continuation and bolster the case for a break above $100K.
3. Fakeout Follow-Through
If BTC instead continues downward, invalidating the bull flag breakout, it may lead to a deeper pullback. Key supports to monitor include prior flag low and major moving averages.
Looking ahead, if BTC can reclaim the flag resistance, expect a further move into the $100-102K range. Failure to sustain recovery may prompt further downside or consolidation.
