Bitcoin's recent sideways price action isn't a sign of weakness—it may be the calm before another explosive move.
Quick Highlights:
Traders eye a possible dip to $90K, but technicals hint at a bullish breakout.
On-chain data reveals current profit-taking isn’t strong enough to kill Bitcoin’s momentum.
Consolidation within a classic bull flag pattern could pave the way for BTC to soar past current resistance.
---
After a stunning surge from $74,400 to $105,900, Bitcoin (BTC) has taken a breather, hovering just under the $104K–$105K resistance zone. While some see this as a stall, savvy analysts recognize a textbook bull flag formation—a strong bullish continuation pattern that typically leads to further gains once resistance breaks.
In bull flag terms, this phase is all about consolidation: short-term indecision as the market absorbs the recent rally. But beneath the surface, key metrics are flashing green.
Data from TRDR.io shows the rally was backed by major liquidations in margin markets and hefty spot volume—fueled in part by a wave of billion-dollar spot Bitcoin ETF inflows. At the same time, global corporations started loading up on BTC for their treasuries, further validating Bitcoin’s long-term potential.
However, around the $105K level, traders have started taking profits. This has cooled momentum slightly, but importantly, there’s no significant uptick in new leveraged long positions—suggesting traders are playing it safe, not bearish.
Profit-Taking? Yes. But Not Enough to Stop BTC’s Ascent
According to Glassnode, profit-taking among short-term holders has increased, yet remains well within historical norms. In fact, during previous rallies toward all-time highs, profit realization surged to +5 standard deviations above the 90-day average—currently, we’re just around +3. Translation? There's still room for another leg up.
Is a Short-Term Dip on the Table?
Analysts caution that Bitcoin may briefly dip to test support in the $100K–$90K range before launching higher. Market intelligence from Material Indicators shows order books preparing for this possibility, with sellers lining up near resistance and buyers moving their bids lower—potentially setting the stage for a liquidity sweep.
Cautious Optimism from Traders
Crypto strategist Daan Crypto Trades shared on X that the market appears to have cleared most major bullish and bearish catalysts. He remains “cautiously bullish” as long as BTC stays above $90K, though he warns that broader equity market trends—especially after major stock rallies—could influence short-term price moves.
> “$90K is my long-term line in the sand,” he said. “If equities cool off, BTC might follow with a quick flush—but the bigger picture remains bullish.”
---
Bottom Line
Bitcoin is in a classic holding pattern—cooling off after a monster rally, yet building pressure for a potential breakout. As long as BTC holds the bull flag support and macro trends remain stable, the next big move could send it soaring to uncharted highs.