The Bitcoin (BTC) market has experienced heightened volatility this week following the impact of former President Donald Trump’s tariff policy. After briefly reclaiming $100,000, BTC quickly lost momentum, retracing to $98,000. Despite this pullback, analysts suggest that Bitcoin has formed a bullish flag pattern, potentially signaling an upcoming breakout.
Bitcoin’s Technical Formation Hints at a Potential Surge
According to crypto analyst Trader Tardigrade, Bitcoin’s price movement on the two-day chart has developed a bullish flag, a continuation pattern that often precedes another upward push. This formation, which follows a sharp rally and a consolidation phase, suggests that BTC may be on track for further gains.
Currently, Bitcoin faces a major resistance level at $104,000, a price zone that previously halted upward attempts. If BTC successfully breaks through this level, it could pave the way toward the next psychological barriers at $110,000 and $120,000. Furthermore, if the bullish flag pattern plays out, analysts predict a potential rally towards $155,000 in the coming months.
On the downside, the $94,000-$96,000 range remains a crucial support zone. A failure to hold this level could invalidate the bullish structure and trigger a deeper correction.
More Bullish Projections for BTC
Beyond the flag pattern, Bitcoin’s long-term ascending channel continues to reinforce a strong bullish trend. According to TradingShot, BTC’s recent rebound from the 100-day moving average mirrors the price action seen during the January 2024 rally, hinting at a fractal pattern between previous and current market cycles.
Technical indicators further support the bullish case, with the Relative Strength Index (RSI) exhibiting symmetry between past and present accumulation phases. Historically, RSI-based accumulation cycles lasted between 25 and 34 days, aligning with the 25 and 32-day ranges observed in the current cycle. If this fractal holds true, Bitcoin may be on the verge of another parabolic rally, with $145,000 as a key upside target.
While price projections vary, the overall outlook suggests a strong recovery in the near term, potentially setting the stage for Bitcoin’s next major breakout.
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