Bitcoin traders are keeping a close eye on the cryptocurrency's price action, with expectations of a potential pullback to $90,000 looming. However, amidst this anticipation, there is also a bullish sentiment building, suggesting that Bitcoin could break out to new highs if profit-taking near the current range highs subsides.

The recent on-chain data indicates that the current profit-taking activity might not be strong enough to halt Bitcoin's upward momentum. Despite spending most of the week below the $104,000 to $105,000 range, some analysts believe that Bitcoin is consolidating within a bullish flag pattern. A bull flag is a technical chart pattern that often signals a continuation of an uptrend after a period of consolidation.

Several factors have influenced Bitcoin's recent price movements. The explosive move from $74,400 to $105,900 was accompanied by significant liquidations in margin markets, robust spot volumes, and billion-dollar inflows into Bitcoin ETFs. Additionally, announcements from various US-based and international companies about their plans to purchase Bitcoin have also contributed to market sentiment.

Data from Glassnode shows that short-term holders are taking profits, but the level of profit-taking remains within normal statistical ranges, leaving room for further upside potential. However, some analysts caution that a brief flush down to test support levels at $100,000 to $90,000 could be a possible scenario for Bitcoin in the near future.

Analysts are closely monitoring Bitcoin's price dynamics, with some suggesting that $90,000 is a critical level to watch for spot exposure. While remaining cautiously bullish above $90,000, the outlook could be influenced by the performance of US equity markets in the short term.

Overall, the cryptocurrency market is experiencing a period of uncertainty as traders navigate potential price movements and market conditions. While Bitcoin has shown resilience in the face of profit-taking and consolidation, the next few weeks could provide more clarity on the direction of the market. As always, it is essential for investors to conduct thorough research and exercise caution when making investment decisions.

Source: https://cointelegraph.com/news/bitcoin-bull-flag-and-standard-profit-taking-hint-at-eventual-rally-to-new-btc-price-highs?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound