In the recent week, the primary digital currency by market cap, Bitcoin (BTC), has been trading sideways within a range of $71,600 to $68,400. This stabilization in price, indicated by short-term candle patterns, demonstrates a lack of definitive movement from buyers or sellers of this asset.

Analyzing the 4-hour chart of Bitcoin, experts observe that the current price volatility is forming a bullish flag pattern. This pattern suggests a possible surge in value after a correction following a previous rally. Bitcoin found substantial support at the 38.2% Fibonacci retracement level during the last correction, leading to a reversal of the downtrend and a resistance challenge at $71,500 with a 17.7% price increase.

Despite this, the price has been moving laterally below the mentioned resistance level, forming a narrow range over a 4-hour period. This sideways movement indicates a consolidation phase before a potential event that could heighten market volatility.

Moreover, technical analysis reveals the formation of a bullish flag pattern in Bitcoin, allowing buyers to gather momentum before continuing the upward trend. Analysts, like Senior cryptocurrency analyst Ali, believe that Bitcoin is exhibiting a strong accumulation pattern despite consolidation near its peak price.

Bitcoin is currently trading at $70,576, showing a 1% daily gain. With signs of a possible uptrend, it is speculated that Bitcoin might break above the upper trend line of the pattern, leading to a rally with targets set at $73,800 and potentially $81,700.