Bitcoin regained a critical support level with a strong 10% increase. Technical indicators and exchange flows are increasing the likelihood of a long-term rally.
Bitcoin gained 10% from the local low at $98,400, rising to $108,200 and regaining an important support point.
The bullish flag formation that has emerged on daily charts indicates that the price could rise to $165,000.
Bitcoin flows on exchanges have also dropped to their lowest level in the last 10 years, indicating that investors are maintaining their long-term positions.
Bitcoin (BTC) reached a weekly peak of $108,200 on June 25, marking a 10% increase from the low level of $98,400 just three days earlier. Currently, BTC is consolidating just below the all-time high of $112,000 and has regained a critical support area.
So, can Bitcoin show an increase of over 50% in the coming days?
The bullish flag in Bitcoin indicates $165,000.
Bitcoin rose by 52% from April 8 to May 22, reaching the level of $112,000. Since then, the price has been fluctuating between $100,000 and its peak. The recovery starting from the last six-week lows below $100,000 shows that bulls are steadfastly defending this price band.
Popular crypto analyst Jelle highlighted in his post on the X platform that 'Bitcoin has regained the critical support area,' emphasizing that BTC is in a bullish flag formation on the daily chart.
The bullish flag is defined as a consolidation formation seen after a strong upward trend, indicating continuity.
Jelle said, 'If the level above $110,000 is broken, the price could rise much faster.' An upward breakout from the flag formation could trigger a new wave of increases in Bitcoin, reaching $165,200 with a 54% increase from the current level.
However, it should be noted that the probability of the bullish flag being successful is about 54%, which prevents us from seeing this formation as the most reliable technical structure.
Bitcoin analyst Merlijn The Trader similarly shared bullish expectations. He stated that based on the inverse head-and-shoulders formation, BTC could rise to $140,000.
'If $112,000 is broken, there will be no barriers preventing it from reaching $140,000,' he added.
Some analysts predict that the peak price of Bitcoin could be in the range of $200,000 to $250,000, citing the increase in the US debt ceiling and former President Donald Trump's tax cuts.
Bitcoin exchange flows are at their lowest level in the last 10 years.
Despite Bitcoin's price being close to all-time highs and the supply in profit exceeding 96%, demand for BTC among exchange users is declining.
According to data from on-chain analysis platform CryptoQuant, the daily average Bitcoin flow on exchanges fell to its lowest level in the last 10 years on Wednesday.
Bitcoin researcher Axel Adler explained, 'The average inflow and outflow volume on centralized exchanges has dropped to daily 40,000 BTC, the lowest level in the last 10 years.'
Adler continued, 'A significant portion of Bitcoin has been withdrawn from exchanges, indicating consolidation and potential liquidity crunch.'
This decrease in flows indicates that investors are moving their coins to their own wallets and viewing Bitcoin as a long-term store of value.
As previously reported by Cointelegraph, total BTC balances on exchanges are at their lowest level in seven years. Glassnode data shows that as of Wednesday, there were 2.92 million BTC on exchanges; this level has not been seen since June 2019.
The decrease in supply on exchanges may lead to liquidity crunch by restricting the amount of Bitcoin available for trading, supporting price increases in the long term.
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