Bitcoin News Today: Bitcoin Confirms Bull Flag Pattern Amid 6% Drop in Market Dominance

Bitcoin has confirmed a bullish flag pattern on its daily price chart, signaling potential upward momentum according to technical analysts. This breakout coincided with a 6% decline in Bitcoin’s market dominance, indicating a shift in capital allocation toward altcoins and reflecting broader market dynamics in the cryptocurrency space [1]. The bull flag pattern, a common technical indicator, often signals the continuation of an existing trend—in this case, a bullish one—suggesting that Bitcoin may continue its upward trajectory.

Bitcoin’s price recently increased by 1.08%, reaching $120,307 after a period of consolidation, marking a recovery from earlier lows of $118,000 [1]. Despite notable outflows from exchange-traded funds, Bitcoin traded above $120,115, supported by positive momentum on key technical levels. However, it still faces resistance at the $123,000 level, which remains a critical target for further gains [2].

The decline in Bitcoin’s dominance—from 65% to 59%—highlights the growing interest in altcoins, with Ethereum leading the charge. Ethereum (ETH) has broken key resistance, trading at $4,685, and saw a 6.34% increase in the last 24 hours [1]. This capital rotation is supported by on-chain data, which shows a rising MVRV ratio and positioning in wedge patterns, both of which are commonly interpreted as bullish signals if the $95,783 level successfully converts into support [4]. Additionally, Bitcoin’s proximity to a key resistance level near $118,582, with the 50-day moving average offering support around $110,000, suggests potential for further volatility [5].

The broader macroeconomic environment also appears favorable for Bitcoin. The odds of a Federal Reserve rate cut have surpassed 90% following the July CPI data, which has historically supported risk-on asset performance [3]. Institutional and whale activity has also contributed to BTC accumulation, reinforcing the asset’s speculative appeal and speculative positioning in the market.

With over $79 billion in open positions in the Bitcoin futures market, speculative demand remains robust [6]. Analysts suggest that the combination of the bull flag breakout, accumulation trends, and macroeconomic tailwinds may set the stage for Bitcoin to move toward $130,000 or higher, depending on how market forces and macroeconomic developments evolve [6]. This scenario underscores the evolving nature of the cryptocurrency market, where Bitcoin’s dominance is being challenged by a more diversified portfolio of digital assets.

[1] U.Today, https://u.today/bitcoin-bull-flag-confirmation-spotted-as-dominance-slips-6

[2] Blockchain News, https://blockchain.news/news/20250813-bitcoin-surges-above-120k-as-btc-technical-indicators-flash-mixed

[3] CoinCentral, https://coincentral.com/bitcoin-btc-price-prediction-whales-target-137k-as-fed-rate-cut-odds-soar-past-90/

[4] Facebook Group, https://www.facebook.com/groups/cryptogb/posts/2416185****768295/

[5] InteractiveCrypto, https://www.interactivecrypto.com/cannabis-meets-crypto-could-this-43b-industry-ignite-bitcoins-next-rally

[6] AInvest, https://www.ainvest.com/news/bitcoin-news-today-bitcoin-eyes-130k-bullish-momentum-short-liquidation-risks-align-2508/