Bitcoin Breaks Above $109,000: A Bullish Flag Formation and Market Analysis Ahead of Potential Rally to $146,000

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A pattern known as a «bull flag» is emerging for Bitcoin, suggesting a potential price increase to $140,000 and beyond. This insight comes from technical analyst Omkar Godbole at CoinDesk.

Bitcoin surged from $75,000 to a record high of $112,000 in just six and a half weeks. Since hitting that peak at the end of May, the asset has been trading within a moderately descending range, creating the bull flag pattern.

To validate this trading formation, Bitcoin needs to break above $109,000, which would pave the way for a rally towards $146,000, according to the analyst.

This pattern reflects a counter-trend consolidation with low volume within a narrow range, following a significant upward movement. Typically, this phase is shallower and shorter in duration compared to the preceding rally.

As noted in Charles Kirkpatrick’s book, «Technical Analysis: A Comprehensive Guide for Financial Market Technicians,» the formation of a bull flag occurs over a brief period, ranging from a couple of days to several weeks.

«It is essential to exercise caution and ensure that the pattern is fully formed before waiting for a breakout,» Kirkpatrick cautions.

There is also a risk that the pattern may fail to confirm. This could happen for two reasons: either falling below the trend range or a lack of bullish momentum to break past the resistance level.

Michael van de Poppe, an analyst and founder of MN Trading, expressed that he had anticipated a longer consolidation for Bitcoin considering the recent downturn due to escalating tensions in the Middle East.

«[…] it seems Bitcoin is leaning towards a more optimistic outlook. Is a breakout imminent?» he remarked.

Trader Titan of Crypto highlighted the still-relevant «inverted head and shoulders» pattern, which indicates that a price of $125,000 is on the horizon.

Investor and OKX partner Ted Pillows outlined a similar scenario with a target of $125,000 to $130,000 by the third quarter.

The expert referenced a chart of global liquidity (M2), observing that the leading cryptocurrency continues to correlate positively with this increasing metric.

Alexey Zyuzin, CEO of Crypto Summit, believes that the most probable outcome in the coming month is a drop to the $95,000-$100,000 range, citing a lack of strong fundamental triggers for sustained growth at this time.

Despite enduring low liquidity on exchanges and stabilized demand, Zyuzin suggests that the conflict between Israel and Iran has redirected investor focus towards traditional assets.

He also noted that reaching new highs is unlikely to happen until late summer or autumn, depending on when the Federal Reserve initiates a rate-cutting cycle.

Ryan Lee, lead analyst at Bitget Research, holds a moderately optimistic view. He estimates that Bitcoin will trade within the $102,000 to $108,000 range in the coming weeks. He also pointed out the positive impact of decreasing Bitcoin volumes on exchanges:

«The average inflow of Bitcoin to trading platforms has fallen to a decade-low of around 40,000 BTC per day. The total supply on exchanges is just 2.92 million BTC, the lowest since 2019.»

Lee reminded that even amidst regional conflict escalation, Bitcoin has maintained its position above $100,000, indicating strong demand for the digital asset from investors, including institutions.

Finally, CryptoQuant analyst Yonsei_dent has warned of an imminent end to Bitcoin’s bullish phase.

Contributor Carmelo Aleman has predicted that Bitcoin could peak above $200,000 in 2025.