New Bitcoin Bull Flag: Is a Massive Breakout Imminent?

New Bitcoin Bull Flag: What It Means for the Next Big Move?

A bull flag is a type of continuation pattern where a strong rise is followed by a period of sideways price movement. The uptrend continues when the structure confirms or breaks from the trendline resistance. In this regard, a different perspective contends that Bitcoin is only consolidating within a bull flag, despite the fact that the price has spent the majority of the week trapped below $104,000 to $105,000, which many analysts have designated as a resistance zone.

Why Bitcoin’s Bull Flag Might Be a False Signal?

Although the flag’s range-bound trading section is supposed to symbolize buyers’ and sellers’ hesitation, in this case, the lack of buy volume is the main offender. The above TRDR.io chart illustrates how Bitcoin‘s sharp rise from $74,400 to $105,900 was accompanied by significant margin market liquidations and strong spot volumes, which coincided with days of billion-dollar spot BTC ETF inflows.

After a 40% Rebound, Bitcoin’s Profit-Taking Could Signal a Cool-Down!

After an almost 40% rebound that began on April 8, Bitcoin’s recent cool-down phase is a typical conclusion. It is also to be expected that profit-taking in futures markets close to the current range high will cause the market to lose upward momentum.

The chart below illustrates how Glassnode’s short-term holder supply profit and loss data support this opinion. The on-chain data company pointed out that short-term traders are taking profits, but they clarified that this is within the statistical norm, allowing for additional price increases.

Recently, the magnitude of STH Realized Profit has surged to almost +3 standard deviations above its 90-day average, reflecting a notable uptick in profit realization. In past cycles, particularly during rallies towards the ATH, this metric has historically climbed to over +5 standard deviations of more. This signals that much stronger profit-taking pressure is often required to overwhelm the inflow demand.

Glassnode

Bitcoin Price Stalls Despite Bullish Market Sentiment—Here’s Why

The majority of bullish and bearish narratives that could have affected Bitcoin’s price action have subsided, according to analyst Daan Crypto Trades, who shared his opinion. He also pointed out that stocks have continued to rise since President Trump’s US-China trade deal was confirmed, while the price of Bitcoin has stalled close to its all-time high.

Bitcoin Price Prediction: Analyst Eyes $90K But Warns of Market Fluctuations

For spot exposure, the analyst stated that $90K is still his long-term line in the sand. He added that he is cautiously enthusiastic about prices above $90,000, but that depends on the short-term performance of US equity markets.

I would not be surprised to see a short-term flush if stocks were to roll over and make a higher low somewhere. Considering most stocks moved 30% to 50% in a single month, this wouldn’t be that crazy either.

Daan Crypto Trades

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