Bitcoin Retreats After Bull Flag Pattern Test, Key Support at $100,777

Bitcoin has recently experienced a retracement after testing the upper boundary of a daily bull flag pattern, with support levels identified between $100,777 and $102,782. This retracement follows a steady upward trend that began in early May, with the cryptocurrency currently trading around $107,679. The bull flag pattern, a technical structure often associated with continuation patterns, suggests that the current price action is part of a broader bullish formation.

The current support level is crucial for maintaining the bullish outlook. If Bitcoin can hold above this zone, the breakout potential remains valid, with resistance levels at $109,324 and $111,840. However, if the momentum continues to decrease, Bitcoin could revisit the support point, which coincides with the 100-day moving average, making it a significant decision point for short-term direction.

Momentum indicators on the 1-hour chart reflect neutral conditions. The RSI stands at 65.68, indicating a state of equilibrium in the market with contracted short-term buying forces. The MACD is slightly positive, with the blue MACD line above the signal line, indicating mild bullish strength despite a weakening histogram. These indicators suggest that while there is a loss of bullish traction, there is no immediate bearish turnover.

Despite the short-term selling, the technical setup for Bitcoin remains bullish. A breakout above $107,724 would validate the continuation towards higher resistance levels. The focus is on whether the $100,777–$102,782 area can hold during this pullback. As long as Bitcoin holds within the bull flag and maintains daily closes above $106,137, the prevailing setup remains positive. However, failing to hold above the tagged support could bring bearish risk.