Bitcoin Bull Flag Suggests Potential Breakout to New Highs Despite Profit-Taking Pressure
After an explosive 40% rally since early April, Bitcoin’s price is consolidating just below key resistance levels, forming what analysts suggest is a classic bull flag — a technical continuation pattern that could pave the way for a new surge to all-time highs.
As of now, Bitcoin (BTC) is trading around $103,657, remaining range-bound between $104,000 and $105,000. While some traders anticipate a pullback to $90,000, the current consolidation is also being interpreted as healthy market behavior following a strong uptrend.
What is a Bull Flag — And Why It Matters Now
A bull flag typically forms after a rapid upward price move, followed by sideways or slightly downward consolidation. Once the price breaks out from the flag’s upper resistance line, the uptrend often resumes. Analysts suggest that the recent sideways action represents temporary indecision, not a reversal.
Volume data from TRDR.io supports this view: the rally from $74,400 to $105,900 was driven by high spot volume and margin liquidations, paired with significant spot Bitcoin ETF inflows. However, profit-taking near the range highs and a lack of new leveraged long positions have contributed to a cooldown.
On-Chain and Market Data Show Underlying Strength
On-chain analytics from Glassnode reveal that short-term holders are taking profits, but the scale of selling is still within historical norms. In previous bull markets, realized profits have reached much higher extremes before triggering a significant correction. This suggests Bitcoin still has room for upward momentum.
“Much stronger profit-taking pressure is often required to overwhelm the inflow demand,” Glassnode noted.
A Test of Support Could Come Before the Next Leg Higher
Despite the bullish setup, analysts caution that a brief dip to test support between $90,000 and $100,000 is possible. Market liquidity firm Material Indicators reports that the order book shows increasing bids at lower levels, suggesting traders are preparing for a possible short-term flush.
BTC: Short-term holder activity in profit and loss. Source: Glassnode
“There’s legit support at $100K,” the firm noted, adding that asks are stacking near current levels while bids shift downward — a sign of potential retracement before a breakout.
Analyst Sentiment: Cautiously Bullish
Crypto analyst Daan Crypto Trades said that most major bullish and bearish narratives have “cleared up,” and Bitcoin’s price has remained stable near its highs even as US equities continued to rally on the back of President Trump’s US-China trade deal.
Bitcoin price liquidity heatmap. Source: Material Indicators
He described $90,000 as his key support level for maintaining long-term bullish exposure and added that he is “cautiously bullish” as long as BTC stays above that threshold. He also warned that a short-term drop could align with a correction in the stock market, which has posted sharp monthly gains.
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