Bitcoin price consolidation after a powerful double-digit rally is normal. Will the current bull flag confirm and send BTC to new highs?
Key takeaways:
Traders expect a Bitcoin price pullback to $90,000, but a bull flag could break out to new highs if profit taking near the range highs reduces.
On-chain data suggests the current profit taking is too weak to extinguish Bitcoin’s current price momentum.
Bitcoin
$102,731
price has spent the bulk of the week pinned below $104,000 to $105,000, which many analysts have labelled as a resistance zone, but an alternative view suggests that BTC is simply consolidating within a bull flag.
A bull flag is a continuation pattern that is characterized by a period of sideways price action following a sharp uptrend, and when the structure confirms or breaks from the trendline resistance, the uptrend continues.