Bitcoin has broken out of its bull flag pattern as of Wednesday, but the price of $BTC hasn’t skyrocketed just yet. Is this a brief consolidation before a significant upward move, or could it be another fakeout?
Not Cut and Dried Yet
The start of this week has been promising for Bitcoin, with the price rising over 5%. This surge pushed $BTC through the top of its long-standing bull flag on its fourth attempt, where it has stayed above as of Thursday.
However, it’s not a done deal. For a more reliable upward trend, we need to see a daily close above the bull flag’s top, ideally followed by two or three more daily closes. Furthermore, Bitcoin needs to convert the resistance at $71,300 into support before it can challenge the all-time high at $73,700.
A Tug of War for the Rest of the Week?
It seems likely that Bitcoin could succeed this time. Although the stochastic RSI indicator on shorter time frames shows momentum moving downward, significant buying pressure from Spot Bitcoin ETFs is counteracting this. If this tug of war continues through the week, it may allow the 4-hour and 8-hour RSIs to reset.
Retest of Support?
In the short term, Bitcoin’s price might dip back into the bull flag, potentially bringing it down to the $69,000 support level, which aligns with the upward trend line.
Even if $BTC retests this support, strong buying from Spot Bitcoin ETFs is expected to continue. Once the price is confirmed above the bull flag and resistance, we could see the next bull market surge.
