BFLY Reclaims Its 20-Day Average As Post-Earnings Whipsaw Continues

BFLY surged 15.6% to close at $8.22 on August 3, reclaiming its 20-day moving average after a sharp post-earnings pullback. The stock has now produced three consecutive double-digit sessions, which sets up a clear conflict: does the rebound clear the $8.39 swing zone and extend toward the $9.69 high, or does the churn resolve lower toward the July base? Volume expanded to 1.5x its 20-day average on the rally, adding weight to the bullish side of that question.

Why This Setup Matters Now

BFLY appeared on the Yahoo Finance day gainers screen with a 15.61% advance, according to Yahoo Finance market movers. The move follows a volatile stretch around the company's July 30 quarterly report, when shares spiked, fell about 13% on July 31, then rebounded on August 3, as covered by Yahoo Finance. Price and volume figures used below come from the Yahoo Finance BFLY chart.

Metric	Value
Ticker	BFLY
Company	Butterfly Network, Inc.
Close (Aug 3)	$8.22
Day change	+$1.11 (+15.61%)
Day volume	12.29M shares
20-day avg volume	7.98M shares
52-week range	$1.32 to $9.69
Source	Yahoo Finance

Quick Read

The setup is a momentum test inside an established uptrend, and the main question is whether the post-earnings recovery has follow-through.

Question	Read
Primary question	Can BFLY hold above $7.11 and clear $8.39?
Trend	Bullish, above rising 20/50/100/200-day averages
Momentum	Positive, RSI 14 at 59.2
Volume	Constructive, 1.54x average on an up day
Main risk	Three double-digit days signal churn, not confirmation

Technical Bias

Every major moving average is rising and sits below price, which keeps the trend structure bullish, though the setup is extended after a 25% gap above the 50-day average.

Factor	Read
Long-term trend	Bullish, price above rising 200-day average at $4.38
Medium-term trend	Bullish, price above rising 50-day average at $6.59
Short-term trend	Bullish, price above 20-day average at $7.29
Momentum	RSI 14 at 59.2, positive but not overbought
Volume profile	Up days running on above-average volume
Overall bias	Bullish above $7.11, fragile below $6.60

Key Levels To Watch

Levels are derived from recent swing points on the daily chart rather than confirmed historical support, so treat them as watch areas.

Level	Price	Note
Resistance 1	$8.32 to $8.39	Recent swing highs, derived zone
Resistance 2	$8.89	Late June high
Resistance 3	$9.69	52-week high
Support 1	$7.29	20-day average
Support 2	$7.05 to $7.14	Recent session lows
Support 3	$6.58 to $6.60	July base, approximate zone
Support 4	$6.35	July intraday low

Scenario Map

The chart resolves cleanly once BFLY closes on either side of the $7.11 to $8.39 range.

Scenario	Trigger	Target
Bullish breakout	Daily close above $8.39	$8.89, then $9.69
Base building	Hold between $7.11 and $8.39	Range with higher lows
Bearish reversal	Daily close below $7.11	Retest of $6.60 zone
Invalidation	Daily close below $6.60	July base fails

Momentum And Volume Check

Today's 12.29M shares traded at 1.54x the 20-day average, per Yahoo Finance chart data. RSI 14 sits at 59.2, leaving room before the 70 overbought line, and volume has stayed above the 10-day average on the rebound.

Metric	Reading	Signal
Day volume	12.29M shares	1.54x the 20-day average
Volume trend	Above 10-day average	Participation is rising
RSI 14	59.2	Positive, not overbought
Price vs SMA50	$8.22 vs $6.59	Extended but in trend
Recent swings	About -13% to +16%	High volatility, needs confirmation

What Would Change The View

The bullish read stands on three specific levels from the daily chart.

Check	Level	Meaning
Add to bullish case	Close above $8.39	Breakout toward the highs
Weaken the case	Close below $7.11	Rebound stalls out
Invalidate the case	Close below $6.60	July base breaks down
Confirmation	Volume stays above 8M	Sustains the advance

Bottom Line

Bottom line: BFLY remains bullish as long as it holds above $7.11. A move above $8.39 would strengthen the setup, while a break below $6.60 would weaken the chart.

Summary

• BFLY closed at $8.22, up 15.61%, on 1.54x its average volume.
• The stock trades above all four major moving averages, and all four are rising.
• RSI 14 at 59.2 shows positive momentum with room before overbought.
• The key resistance zone is $8.32 to $8.39, with the 52-week high at $9.69.
• The bullish case breaks if BFLY closes below the $7.11 to $6.60 area.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Technical indicators can help frame risk and momentum, but they do not guarantee future price movement.