09/07/25

15

Bitcoin has recently broken out of a consolidation pattern characterized by an orange bull flag on the one-hour chart. This move, following a period of tight range-bound trading, suggests that bullish momentum is regaining strength. The breakout could lead to a swift advance toward higher resistance levels, as technical indicators point to increased buying interest.

Technical analysis highlights the formation of a large green double bottom pattern within the bull flag, signaling a potential continuation of upward movement. The recent peak tested the trigger line of this pattern, indicating active bullish participation. Currently, Bitcoin is retesting the upper boundary of the flag, which coincides with the 200-period moving average on the one-hour chart — a significant dynamic support level that often influences short-term price direction. Should Bitcoin sustain above this level, the prospects for further gains improve.

Meanwhile, some analysts observe the emergence of a small bullish pennant, suggesting a possible continuation higher. However, caution is warranted, as a rare diamond top pattern may be forming. If validated, this bearish reversal pattern could trigger a significant decline, with a potential target near the $103,000 level. Losing the 200-period moving average on the one-hour timeframe would shift focus to the four-hour chart’s similar support level, which remains a critical line of defense.

On the upside, key resistance levels are identified at $113,700, $115,867, $117,030, and $122,143, where a decisive breakout could signal a new bullish phase. Conversely, failure to break above $110,000 on the four-hour chart could result in a retest of lower support levels, particularly around $104,000, where previous demand has been observed.

Market sentiment appears cautiously optimistic. The Relative Strength Index (RSI) remains neutral, indicating room for momentum to develop, while the Moving Average Convergence Divergence (MACD) shows a bullish crossover, hinting at upward potential. Despite trading below the exponential moving average, Bitcoin’s resilience near the $108,000 level reflects underlying buying interest, with support around $106,000 and resistance at $112,000. Overall, the technical landscape suggests a period of consolidation that could precede a meaningful directional move.