Bitcoin Hits $107,600 Peak Amid Bull Flag Pattern

Bitcoin (BTC) has reached the peak of its bull flag pattern, following a week of strong price movements. This peak suggests a potential rejection, which could be the final down movement within the flag as Bitcoin prepares for a significant breakout. The current price is supported at $107,600, but there is a possibility of a further dip to $106,000 or even $104,000. The 4-hour Stochastic RSI has already touched bottom, indicating that the $106,000 support level might hold.

On the daily time frame, the bull flag pattern is more pronounced, and while a rejection may have begun, an upward breakout appears more likely than a downward one. The Stochastic RSI indicators are at the top, suggesting a potential loss of price momentum. However, these indicators could be supported by the 80.00 or 50.00 levels before crossing back up. The Relative Strength Index shows a downward angle, but if it confirms the descending trendline before rising again, it would be a bullish signal.

The 2-week time frame shows that the next weekly close, coinciding with the 2-week close, is crucial. The price needs to be above the major $104,400 horizontal support to establish this level as a base for the next surge. The Stochastic RSI indicators are tightly embraced, and if the fast indicator line remains above the slow line by the end of the week, it will be bullish. The MACD indicator is also showing entwined lines with flat histogram bars, and it is expected to signal a direction by the end of the week.

Bitcoin treasuries and U.S. Spot Bitcoin ETFs have been actively purchasing Bitcoin. Michael Saylor’s Strategy recently announced a purchase of 4,980 BTC, bringing its total holdings to nearly 600,000 BTC at a cost basis of nearly $71,000 per Bitcoin. Last week, U.S. Spot Bitcoin ETFs attracted a total inflow of just over 21,000 BTC, with the Blackrock IBIT ETF accounting for more than half of this. Additionally, the Japanese Bitcoin treasury company Metaplanet acquired an additional 1,005 BTC, making it the 5th-largest public Bitcoin holder, surpassing Galaxy Digital and Cleanspark.

This rapid purchasing activity coincides with Bitcoin's position at the top of the bull flag, suggesting that the price may be on the verge of an explosive upward movement. The current price action and technical indicators point to a potential dip before a significant breakout, but the overall trend remains bullish. Investors and traders are closely watching the next weekly close to determine the direction of the next surge.