There are some interesting trends in the cryptocurrency market that could point to a possible Bitcoin rally to new highs. One of these trends is the formation of a “bull flag” – a period of sideways movement after an uptrend.
What is a “bull flag”?
A “bull flag” is characterized by a lack of buying volume and price consolidation after a strong rally. This is a normal phenomenon that may indicate that the market is preparing for a new growth impulse.
Trader Expectations
Traders are expecting a price pullback to $90,000. However, if profit taking declines, the bullish trend may rise to new highs.
On-chain data
According to on-chain data, the current profit taking is too weak to extinguish the current momentum. The Bitcoin price has been holding below $104,000-$105,000, which may indicate consolidation within the bullish trend.
Liquidations and Volumes
The rapid rise to $105,900 was accompanied by large liquidations and spot volumes. This may indicate that large players are active in the market. Several companies have announced plans to buy Bitcoin, which may also support the price increase.
Profit Taking and Support
Traders are selling near the range highs without opening new long positions. When falling to the range lows, orders are filled, but margin is used sparingly. This may indicate that some market participants are taking profits, but are not in a hurry to exit positions completely.
Recovery and Support
Bitcoin’s recovery after almost 40% growth is normal. However, analysts are warning of a possible test of support from $100,000 to $90,000.
Glassnode and onchain data
Glassnode data confirms profit taking, but it is not exceeding the statistical norm. Onchain data notes an increase in profit realization, but this does not exceed the demand for capital inflow. This may indicate that the market is in a state of equilibrium between profit taking and the influx of new investors.
Analysts’ forecast
Analysts warn of a possible test of support from $100,000 to $90,000, but the mood remains cautiously bullish. Daan Crypto Trades analyst sees $90,000 as a long-term target.
Overall, the situation in the cryptocurrency market remains uncertain, and investors should exercise caution when making decisions. However, some trends may indicate potential for Bitcoin growth in the future.
