Bitcoin News Today: Bitcoin Nears $109K Target as Bull Flag Breakout Looms

Bitcoin's price action in recent weeks has ignited renewed discussions among traders and analysts about the potential for a significant upward move. Technical chart patterns such as the bullish W formation and the inverse head and shoulders are drawing attention, with some suggesting these could signal a continuation of Bitcoin’s long-term uptrend. On the 4-hour chart, Bitcoin has been consolidating near the lower trendline of a bull flag, and a successful breakout could see it retest the upper boundary of the pattern, potentially pushing the price toward $109,000 [1].

The daily chart provides further insight into the bulls’ resilience. A recent bearish attempt to push the price outside the bull flag was countered, with the price being pulled back into the pattern by the end of the trading session. This, along with the formation of a visible candle wick, demonstrates the strength of the buying pressure [1]. The Stochastic RSI continues to trend upwards, suggesting that momentum is still favoring the bulls.

On a larger time frame, the inverse head and shoulders pattern has emerged as a key technical indicator. Formed during a significant descending wedge and a subsequent bull flag, the pattern shows Bitcoin testing its neckline once more after breaking through it previously. A successful retest could trigger a measured move projecting a target price of around $150,000 [1]. The pattern’s formation on the weekly chart adds weight to its significance, as larger time frames often reflect more impactful price movements.

Despite the technical bullish signals, not all analysts are convinced of a straightforward rally. Veteran trader Brandt has expressed caution, warning that those expecting Bitcoin to solve financial problems may be disappointed. He previously forecast a major correction in August 2025, and while that scenario has not materialized yet, the volatility remains a concern for investors [4].

Liquidity conditions are also a point of focus. Bitcoin's price is highly sensitive to market demand, and analysts note that sharp corrections can occur during economic downturns. Historical data shows that Bitcoin can experience drops of more than 75% in such environments, highlighting the ongoing risks even in the face of bullish chart setups [5].

Technical indicators also suggest that the current bullish momentum may be excessive. Some analysts have flagged signs of an “overheated” market, where the rapid price increases could signal an unsustainable move [6]. This has led to warnings that traders should remain cautious and watch for potential reversal signals.

Bitcoin has also tested a key support level at around $112,000 amid a decline in ETF flows. Analysts view this as a critical moment, with the ability to hold above this level potentially marking the start of a new bullish phase [7]. The dip to this area has been described as a “perfect bottom” by some, a level historically associated with significant price gains [9]. Others see Bitcoin bouncing off this support, reinforcing the case for a continued upward trend [8].

As the market continues to evolve, Bitcoin’s price behavior will likely remain closely monitored. While bullish patterns suggest the potential for a major rally, the interplay of technical signals, liquidity conditions, and market sentiment will ultimately determine the outcome.

Source:

[1] Bitcoin (BTC) Bullish Patterns: Will They Trigger a Major Rally? (https://cryptodaily.co.uk/2025/08/bitcoin-btc-bullish-patterns-will-they-trigger-a-major-rally)

[4] Veteran Trader Brandt Warns That Those Who Believe Bitcoin Will Fix Their Lives Will Be Disappointed (https://thecryptobasic.com/2025/08/06/veteran-trader-brandt-warns-that-those-who-believe-bitcoin-will-fix-their-lives-will-be-disappointed/)

[5] Bitcoin Rally Faces Potential Risks Amid Liquidity Concerns (https://www.bitget.com/news/detail/12560604897266)

[6] Is Bitcoin Overheated? Key Signal Flashes Warning Similar to Past Rallies (https://www.mitrade.com/au/insights/news/live-news/article-3-1014417-20250806)

[7] ChatGPT's BTC Analysis Shows Key $112K Support Amid 333M ETF Outflows as Bull Run Faces Uncertainty (https://www.tradingview.com/news/cryptonews:7d65455ab094b:0-chatgpt-s-btc-analysis-shows-key-112k-support-amid-333m-etf-outflows-as-bull-run-faces-uncertainty/)

[8] Bitcoin Bounces Off Key Support as Analysts Flag Upcoming Bullish Phase (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-bounces-key-support-analysts-flag-upcoming-bullish-phase-2508/)

[9] Analyst Calls Bitcoin Dip the 'Perfect Bottom', BTC Set to Challenge Key Resistance (https://www.fameex.com/en-US/news/crypto-trending-news-2025080401)