The post Bitcoin Consolidation Signals Possible Price Test at Support Levels Amid Bull Flag Formation appeared on BitcoinEthereumNews.com.

Bitcoin’s recent price consolidation follows a remarkable surge, raising questions about its trajectory as traders eye resistance levels. Diversified perspectives suggest that while a pullback is anticipated, bullish signals from on-chain data may indicate underlying strength. “Currently, the selling pressure seems insufficient to negate Bitcoin’s positive momentum,” notes a recent analysis from COINOTAG. Bitcoin’s price consolidation raises questions about future performance, with traders balancing between potential pullbacks and bullish indicators. Assessing Bitcoin’s Resistance and Potential Bull Flag Bitcoin (BTC) has experienced a significant price uptick, hovering between $104,000 and $105,000 for most of the week. Analysts view this range as a critical resistance zone. However, contrasting viewpoints suggest that the cryptocurrency may be forming a bull flag, a continuation pattern indicative of a potential upward breakout. A bull flag manifests as a sideways trading period following a rapid uptrend. According to traditional chart patterns, upon confirming the breakout above the trendline resistance, this could propel Bitcoin into a new bullish phase. As this market dynamic unfolds, the focus shifts to the absence of significant buying pressure during the consolidation. Analyzing On-Chain Data and Market Sentiment The recent chart data from TRDR.io illustrates that Bitcoin’s ascent from $74,400 to a peak of $105,900 was accompanied by notable liquidations in margin markets. This movement coincided with substantial inflows into Bitcoin ETFs, showcasing robust investor interest. However, current trading activity shows a trend of traders selling near the range highs. Despite the recent cool-down, characterized by limited buying volume and profit-taking activities, Bitcoin still exhibits considerable potential for further gains. On-chain analysis by Glassnode indicates that short-term holders are realizing profits without overwhelming the current upside momentum. Such activity falls within statistical norms, suggesting room for BTC’s growth. Anticipating Future Price Movements: Support Level Insights As Bitcoin’s trading liquidity diminishes near $105,000, speculation…

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Filed under: News - @ May 17, 2025 2:29 am