Bitcoin Confirms Bullish Flag Breakout, Eyes 120,000

Bitcoin has recently confirmed a bullish flag breakout, a pattern that technical analysts have been closely monitoring. This pattern suggests that Bitcoin could potentially reach $120,000 by July, provided that the breakout is sustained. The bullish flag pattern is a classic technical indicator that signals a continuation of an uptrend after a brief consolidation period. Respected traders have noted this pattern, and its confirmation could propel Bitcoin toward new heights.

The breakout from this pattern is significant because it indicates an extension of the bullish trend that began from the early April lows. This trend has been supported by various technical indicators and analyst forecasts, which suggest that Bitcoin is poised for further gains. The cryptocurrency has managed to close above two crucial levels over the past few days, recording its highest weekly close in history. This achievement positions Bitcoin for a reclaim of its final major weekly resistance around $109,000, a level it has been nearing for several days.

On Sunday, Bitcoin surged above the key barrier and closed the week around the $109,200 mark, successfully confirming its diagonal daily trendline as support. Now, the cryptocurrency is retesting the final resistance to confirm the breakout. Analysts like Rekt Capital have affirmed that the goal is to turn this resistance into support, which could push Bitcoin to new all-time highs. However, given the volatile nature of the retest, the process is likely to be tumultuous.

Despite the volatility, Bitcoin has significant high timeframe support beneath it, which should act as a demand area to springboard the price into a new uptrend over time. Notably, Bitcoin reclaimed and held the high zone of its re-accumulation range, around the $104,400 mark, as support over the past two weeks. Additionally, June's monthly close above the $102,464 level and the retest post-breakout have set this level as a monthly support. The $107,244 level has also emerged as a crucial area after last month’s close, driving Bitcoin back to its retesting phase.

Rekt Capital considers Bitcoin’s current phase as “the calm before the storm,” suggesting that as long as the post-breakout retest continues, Bitcoin will remain positioned for its second price discovery uptrend. However, the cryptocurrency is currently locked between the $104,400 and $111,000 levels so far this month. Daan Crypto Trader warned investors that the upcoming days could be crucial for Bitcoin’s price action this month, highlighting that Bitcoin has tended to set its monthly high or low within the first 12 days over 80% of the time. June was an exception, with Bitcoin remaining relatively stable. Now, analysts are on the lookout for any big move up or down within the first 12 days to potentially determine Bitcoin’s trend for the rest of the month.

Technically, Bitcoin is still looking perfectly around the current levels, but with the slower pace during the summer, it could remain within its current range until a real move up begins at the end of Q3 and the start of Q4. The trader concluded that the cryptocurrency must officially break out of its range before investors get excited for much higher prices later this year. As of the latest update, Bitcoin is trading at $107,973, reflecting a 1% decline in the daily timeframe.

MaxFINEancial’s latest analysis on X highlighted that a large green double bottom is forming within an orange bull flag on the 1-hour chart, which is a bullish continuation setup. The local high was a test of the trigger line of the double bottom, which signaled intent from the bulls. BTC is retesting the upper edge of the bull flag, aligning with the 1-hour 200-day MA, a critical dynamic support level that often dictates short-term momentum. MaxFINEancial projects a small pink bullish pennant forming and setting up for a continuation move higher. However, a rare diamond top pattern could also be taking shape, a bearish reversal formation that, if validated, may trigger a sharp downside move. If BTC loses the 1-hour 200-day MA, he advises shifting focus to the 4-hour 200-day MA, which is the line of defense. The important bullish area targets are $113,700, $115,867, $117,030, and $122,143, while the bearish diamond top target is $103,079.

Market analyst A_y has also highlighted that Bitcoin is consolidating below the $110,000 resistance on the 4-hour chart, with the structure forming a textbook ascending triangle. This setup is the rising higher lows against horizontal resistance that precedes a strong breakout. If BTC manages to break above $110,000, the move could accelerate toward the $112,000 to $114,000 range, marking a bullish trend. However, failure to breach this ceiling may lead to a pullback toward $104,000, where previous demand has stepped in. The Relative Strength Index (RSI) is neutral, suggesting that there is room for momentum to build, while the Moving Average Convergence Divergence (MACD) shows a bullish crossover, that is hinting at potential upward momentum, BTC is still trading below the EMA, which means bulls need to prove strength for a confirmed breakout.

In an update on X, Chad_TattoosMD also emphasized that Bitcoin is showing resilience and holding strong around the $108,000 level despite the recent dip. BTC is maintaining its structure and refusing to break lower, which is a sign of underlying buyer confidence. The Relative Strength Index (RSI) sits at neutral 54, indicating no extreme momentum in either direction. Meanwhile, the Stochastic (RSI) has entered overbought territory and is now cooling off, hinting at a potential short-term pullback. However, nothing on the chart suggests a breakdown is imminent. Chad_TattoosMD also points to $106,000 as the key support, and $112,000 as the resistance, which remains in a tight zone on the chart.