Introduction
Bitcoin (BTC) has been consolidating just below a key resistance level over the past several days. This period of sideways movement, without any significant pullbacks, reflects notable strength in the market. Such price behavior often precedes a strong directional move, and in this case, the technical setup continues to favor the possibility of a bullish breakout.
1H BullFlag Pattern
On the 1-hour timeframe, BTC is forming a well-defined bull flag pattern, which is typically a bullish continuation signal. This flag began to develop after BTC surged from approximately $105,000 to $110,000, creating the flagpole that represents the initial wave of upward momentum.
Since that move, price has entered a consolidation phase, forming the flag portion of the pattern with declining volume and tighter price action. If BTC breaks out above the upper boundary of this flag, the measured move target projects a rally toward the $115,000 level. Reaching this target would represent a new all-time high for Bitcoin, signaling a continuation of the broader uptrend.
4H Fair Value Gap (FVG), Downside Scenario
Although the overall structure favors a bullish outcome, it is important to acknowledge the potential for a short-term retracement. On the 4-hour chart, there is a Fair Value Gap (FVG) between $105,700 and $106,800. If BTC fails to break out immediately, this zone becomes a logical area to monitor.
Price may revisit this imbalance to fill the gap left behind by the recent upward move. A dip into this area could present a strong opportunity for long entries, particularly if buyers step in with conviction. Filling this FVG would allow for a more balanced structure before BTC attempts a sustained move higher.
Conclusion
BTC continues to show impressive resilience as it consolidates near its prior highs. The presence of a bull flag on the lower timeframes, coupled with minimal downside volatility, suggests that a breakout above resistance is becoming increasingly likely.
However, reclaiming the previous all-time high remains a critical step before targeting the projected $115,000 level. How BTC reacts to that key resistance area will provide important insight into the strength of this rally.
At this stage, the bullish case remains the higher probability scenario, while any short-term pullback into the FVG zone could offer a healthy reset and a potential long setup for continuation toward new highs.
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