Bitcoin's Bullish Pattern Investigated as Influence Wanes by 6%
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The cryptocurrency market is experiencing a surge in bullish momentum, with Bitcoin (BTC) and Ethereum (ETH) leading the charge.
Ethereum has broken key resistance and is currently trading at $4,685, up 6.34% over the previous day. This surge follows a significant event in Bitcoin's price action.
Bitcoin has closed above a bull flag on the daily price chart, indicating a potential upward movement. The bull flag breakout, together with the new support level, suggests that Bitcoin may hit a new all-time high.
A bull flag is formed by an asset moving in a strong upward trend followed by a consolidation period, resulting in a flag-shaped price action. This pattern is typically a continuation pattern signaling a pause before further upward movement.
The flag's support holds around $115K while resistance at $120K is being tested repeatedly, indicating growing buying pressure. A confirmed breakout above $120K would likely trigger a move toward targets near $126K–$130K.
Recent price action shows Bitcoin successfully retesting the $120K level as new support, confirming the bull flag breakout.
Other altcoins, such as XRP, Binance Coin (BNB), and Solana (SOL), have also registered price increases. XRP has increased by 3.2%, Binance Coin (BNB) by 5.6%, and Solana (SOL) by 13.7%.
The price rally in Ethereum, XRP, Binance Coin, and Solana suggests positive performance in the altcoin market. This could be a sign of a more diversified crypto market rally rather than Bitcoin alone leading the entire market.
It's worth noting that Bitcoin dominance has dropped from 65% to 59%, marking a 6% drawdown over two months. This drop suggests that money is rotating into altcoins.
Analysts at Bernstein anticipate Bitcoin’s bull run could last into 2026 or 2027 and predict prices reaching as high as $200,000 within the next 6 to 12 months, supported by regulatory tailwinds and institutional interest.
However, investors should watch key support levels around $113,000 and $120,000 to gauge the sustainability of this upward trend. The next key support for Bitcoin, according to Rekt Capital, is $120,019.
Earlier in the week, Bitcoin dropped toward the $118,000 lows. This decline demonstrates the growing appeal of altcoins amid broader risk-on behavior. According to Glassnode, the decline is attributed to capital rotation, with traders exploring other digital assets.
In conclusion, the current analysis indicates a strong bullish outlook for Bitcoin and the altcoin market. The technical pattern of a bull flag breakout near $120,000 combined with supportive moving averages and high open interest points to a likely upward move toward $130,000 in the short to medium term. However, investors should remain vigilant and closely monitor key support levels to assess the sustainability of this upward trend.
Cryptocurrency investors are considering diversifying their portfolio as other altcoins like XRP, Binance Coin (BNB), and Solana (SOL) have registered price increases, following the bull run of Bitcoin and Ethereum. This growth in the altcoin market may suggest a more diversified rally, rather than Bitcoin leading the entire market. A recent report from analysts at Bernstein predicts Bitcoin’s price reaching as high as $200,000 within the next 6 to 12 months, with potential support from regulatory tailwinds and institutional interest. However, it's crucial for traders to keep an eye on key support levels, such as $113,000, $120,000, and $120,019 for Bitcoin, to assess the sustainability of this upward trend.
