Bitcoin Breaks Bull Flag Pattern Targeting 113700

Bitcoin has shown renewed bullish signals after successfully breaking out of a closely watched bull flag pattern, sparking optimism for a potential surge toward new local highs if buyers maintain their momentum. After weeks of sideways movement, Bitcoin (BTC) finally broke above the orange bull flag on the 1-hour chart, with traders like MaxFINEancial and A_y highlighting this breakout as a clear indication that bulls are regaining short-term control.

According to MaxFINEancial’s latest chart analysis, a large green double bottom has formed inside the bull flag, which is typically a bullish continuation pattern. The trigger line retest indicated bullish intent, and BTC is now retesting the upper edge of the flag, around the 1-hour 200-day moving average, a key dynamic support level that traders use to gauge momentum. MaxFINEancial also noted that a small pink bullish pennant is forming, adding weight to the breakout case. If the pennant plays out, the next leg higher could target bullish levels at $113,700, $115,867, $117,030, and even $122,143. However, traders must watch for a rare diamond top pattern lurking on lower timeframes. If confirmed, this bearish reversal could drive BTC down to around $103,079.

Meanwhile, analyst A_y pointed out that BTC is consolidating just under $110,000 on the 4-hour chart, shaping into an ascending triangle, a pattern known for higher lows pressing against horizontal resistance. A clean breakout above $110,000 could push BTC toward the $112,000 to $114,000 zone quickly. If buyers fail to push through, a pullback toward $104,000 remains a possibility, aligning with earlier areas of buyer demand.

Bitcoin’s Relative Strength Index (RSI) is sitting neutral around 54, indicating balanced momentum and room for buyers to build strength. The MACD shows a bullish crossover, another positive signal for an upward move. However, BTC remains slightly below its short-term exponential moving average, so bulls still have to prove staying power. Trader Chad_TattoosMD added that Bitcoin’s price action remains resilient near $108,000 despite the recent dip. He flagged $106,000 as strong support, with $112,000 acting as a tight resistance band for now. The Stochastic RSI has moved into overbought territory and is cooling off, hinting that BTC could see a short-term pullback before any significant push higher.

For now, Bitcoin’s confirmed breakout suggests the market may have more upside to test key resistance levels above $110,000. However, traders should watch for a potential retest of support around $106,000 if the bullish pattern fails to hold. With strong technical structures and healthy buyer interest, Bitcoin’s next big move will likely hinge on how the price reacts around the $110,000 mark.

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