Bitcoin pulled back from a local high of $79,500 to $76,700 last week, and the resulting price structure now resembles a bull flag. A confirmed breakout would open the way toward a $90,000 target, though the pattern still lacks the touches needed to call it complete.
Bitcoin hit a local high of $79,500 before falling back to $76,700, and the pullback has since regrouped into what looks like a classic bull flag on the short-term chart. If confirmed, the pattern points to a $90,000 target once a breakout materializes.
Bull flag still incomplete
A bull flag typically needs at least three touches at the top of the flag structure and three at the bottom before it counts as confirmed. Bitcoin's price action is still lacking that requirement, though further sideways-to-lower chop could complete it over time.
Since the top, the retracement has only reached the 0.236 Fibonacci level — the shallowest of the Fibonacci levels. A bounce from here would be bullish, but a deeper correction to the 0.382 level would likely be the healthier outcome.
Confluence pulls toward $69K
A deeper pullback could still draw the price down toward $69,000, where horizontal support and the 0.618 Fibonacci level await, alongside a potential confirmation of the 200-day simple moving average. That confluence of technical levels could act like a magnet for a healthy correction.
The Relative Strength Index (RSI) is sitting in overbought territory, at a height not seen since Bitcoin entered its eight-month bull flag in February 2024. The climb has also potentially nullified the downward trend that stretched back to November 2024.
Resistance ahead on the weekly chart
On the weekly time frame, current resistance sits at $78,600, with the next level at $82,750, one of the bear market highs. Neither level has been broken through yet, leaving open whether the rally continues or a longer correction sets in first.
Weekly RSI has broken through its downtrend line, but whether it holds above that line won't be clear until the end of this week. If it does, more upside price action would likely follow. A renewed upward push could still complete the bull flag, though a sharper rally now risks a more violent correction later once buyers are exhausted.
Source: Crypto Daily
Trading involves risk.
Risk Disclaimer
