Confirmed Signal of Bitcoin Bull Flag Emerges as its Dominance Declines by 6%
Bitcoin is currently exhibiting strong technical signs of a bull flag consolidation near the $115,000–$120,000 range, a pattern that is widely interpreted as a precursor to a bullish breakout. This breakout could potentially send the price of Bitcoin toward new all-time highs around $125,000 to $130,000.
The bull flag pattern, a classic technical formation, suggests that Bitcoin is pausing before continuing its upward trend, possibly breaking above the $120,000 resistance to target higher prices. This is according to several recent analyses based on patterns and momentum indicators.
The price consolidation is supported by strong institutional accumulation and favourable macroeconomic factors. For instance, a high probability of Federal Reserve rate cuts enhances Bitcoin's appeal as an inflation hedge ahead of the 2025 halving.
Technical indicators also confirm a long-term bullish structure. Bitcoin is trading above its 200-day Simple Moving Average (SMA) and is poised to surpass its 20-day SMA once momentum shifts. The expected breakout target within approximately 30 days is $125,000, potentially extending to $130,000 if momentum intensifies.
Recent price action suggests that buying interest remains strong, further supporting the likelihood of breakout continuation. Key resistance levels to watch are $120,000, $122,000, and the all-time high around $123,000. A decisive move above these levels, especially with strong trading volume, would confirm a new leg up.
Other altcoins, such as XRP, Binance Coin (BNB), Solana (SOL), and Ethereum (ETH), have also registered price increases. Ethereum, for instance, has broken key resistance and is currently trading at $4,685, up 6.34% over the previous day.
Rekt Capital, a popular market analyst, has highlighted a bull flag pattern on the Bitcoin chart. Meanwhile, Glassnode suggests that the decline in Bitcoin dominance demonstrates the growing appeal of altcoins amid broader risk-on behaviour.
As Bitcoin retests the bull flag as support, traders should watch for a clean breakout above $120,000 with strong volume to confirm this trajectory. If the breakout occurs, Bitcoin could potentially reach and potentially exceed its all-time highs in the near term.
- The bull flag pattern on Bitcoin's chart, similar to the one Ethereum has recently broken, could propel trading in altcoins like XRP, Binance Coin (BNB), Solana (SOL), and others.
- If Bitcoin successfully breaks above the $120,000 resistance, driven by institutional accumulation and favorable macroeconomic factors, the price of Ethereum could potentially see further gains, contributing to the overall growth in the crypto market.
- Given the potential bullish breakout in Bitcoin toward $125,000 to $130,000, and the growing appeal of altcoins, investors might consider diversifying their finance portfolios by both Bitcoin and select altcoins like Ethereum for potential investing opportunities.
