$BTC Technical Analysis:
"Almost Head & Shoulders Invalidates, Bullish Flag Potential Emerges"
The $BTC recently hinted at the formation of a head-and-shoulders pattern, However, on closer examination, this pattern appears to be losing its validity as price action continues to hold above key support levels.
This invalidation opens the door to an alternative, more bullish scenario: the potential formation of a bullish flag on the daily timeframe.
Bullish Flag Formation on the Daily Chart
A bullish flag is a continuation pattern characterized by a strong upward movement (the "flagpole"), followed by a period of consolidation within parallel trendlines (the "flag").
Key Level: $102,720 Resistance
The previous resistance level of $102,720 will be crucial for confirming the bullish scenario. A clean breakout above this level could signify the end of the consolidation phase and the start of the next leg higher.
If BTC can reclaim this resistance as support, it strengthens the case for a sustained uptrend.
Potential Scenarios
Bullish Continuation:
A breakout above $27,720 would validate the bullish flag, potentially driving the price higher toward new local highs.
Failed Breakout:
If BTC/USDT fails to break above $27,720 and dips below key support levels, a retest of lower levels could occur. However, the invalidated head-and-shoulders pattern reduces the likelihood of a sharp bearish reversal.
Conclusion:
As always, traders should remain cautious and keep an eye on volume and key support/resistance levels to adapt to any sudden changes in market conditions.
Let’s see how the price action unfolds—bulls seem to have the upper hand! 🚀
