Bitcoin Breakout Above $109,000 May Confirm Bull Flag Pattern and Propel Prices Towards $140,000

The chart for the leading cryptocurrency is forming a ‘bull flag’ pattern, indicating a potential surge to $140,000 and beyond. This was stated by technical analyst Omkar Godbole from CoinDesk.

Bitcoin has surged from $75,000 to a peak of $112,000 over the past six and a half weeks. Following this peak in late May, the asset has been trading within a moderately downtrending range, establishing the ‘bull flag’ formation.

For this trading pattern to be validated, the digital gold must break above $109,000, which would pave the way for a rally to $146,000, according to the analyst.

The pattern signifies a countertrend consolidation occurring with low volume within a narrow range, preceded by a sharp price increase. This phase is typically shorter in depth and duration than the preceding rally.

As outlined in Charles Kirkpatrick’s book «Technical Analysis: A Complete Course for Financial Market Technicians,» the formation of a ‘bull flag’ typically takes a brief period—anywhere from a few days to several weeks.

«It is crucial to exercise caution and ensure that the formation is complete by waiting for a breakout,» Kirkpatrick cautions.

There’s also a risk that the pattern may fail, potentially due to a drop below the trend range or insufficient buying strength to break through resistance.

Michael van de Poppe, an analyst and founder of MN Trading, highlighted that he initially expected a longer consolidation for Bitcoin, given the recent decline amid escalating tensions in the Middle East.

«[…] it appears that Bitcoin is showing an even more optimistic outlook. Is a breakout imminent?» he inquired.

A trader known as Titan of Crypto pointed out a still relevant ‘inverted head and shoulders’ pattern, suggesting a forthcoming price of $125,000.

Investor and OKX partner Ted Pillows put forth a similar projection, targeting $125,000–$130,000 by the third quarter.

The expert referred to a chart of global liquidity (M2), noting that Bitcoin continues to correlate with this indicator, which is on an upward trend.

Alexey Zyuzin, CEO of Crypto Summit, believes that the most likely scenario over the next month will be a decline in price toward $95,000–$100,000 since «currently, there are no strong fundamental triggers for a sustained upward trend.»

Despite the ongoing low liquidity on exchanges and stabilization in demand, the conflict between Israel and Iran has shifted investors’ focus toward traditional assets, he argues.

Zyuzin also remarked that new price peaks are unlikely to occur before late summer or autumn, depending on when the Federal Reserve begins its rate-cutting cycle.

Ryan Lee, the lead analyst at Bitget Research, has taken a moderately optimistic stance. He estimates that Bitcoin will trade within the range of $102,000–$108,000 in the coming weeks. He also noted the positive impact of reduced Bitcoin volumes on exchanges:

«The average Bitcoin inflow [to trading platforms] has dropped to a 10-year low—around 40,000 BTC per day. The total supply on exchanges stands at just 2.92 million BTC, the lowest since 2019.»

Lee also reminded that even amid intensifying conflict in the Middle East, Bitcoin has remained above $100,000, demonstrating persistent demand for the digital asset from investors, including institutional ones.

To reiterate, CryptoQuant analyst Yonsei_dent has warned of the impending conclusion of Bitcoin’s bullish phase.

Contributor Carmelo Aleman has predicted that Bitcoin’s price could peak above $200,000 by 2025.