‎Bitcoin Continues Bullish Forming a Bullish Flag Pattern Formation

‎Bitcoin Market Analysis – May 7

‎Bitcoin continues to demonstrate strong bullish momentum, recently confirming a bullish flag pattern that signals the potential for further upward expansion in the market.

‎Bitcoin (BTCUSD) Key Levels‎

‎Support Levels: $74,200.00, $61,000.00
‎Resistance Levels: $89000.00, $110,600.00

BTCUSD Long-Term Trend: Bullish

‎Following the breakout above the $61,000 level, Bitcoin experienced a substantial bullish momentum, marked by a series of large bullish candles, especially those above the $74,200 threshold. This surge in price signaled the continuation of an uptrend, as Bitcoin reached new highs. The market witnessed a notable rally, with the price pushing past the $89,000 supply zone, which led to a temporary decline.
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‎However, after breaching this level, Bitcoin entered a bearish phase, characterized by a descending channel that resulted in a decline until the price hit the $74,200 level. From there, a reversal occurred, with the price breaking out of the bearish channel and initiating another bullish move. This breakout, in conjunction with previous price action, suggests the formation of a bullish flag pattern—a reliable continuation signal in technical analysis.
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‎Furthermore, the daily moving average (MA) aligns with the bullish crypto signal, as the price remains above this indicator, reinforcing the ongoing upward movement.

‎BTCUSD Medium-Term Trend: Bullish

In the medium term, Bitcoin has seen significant price gains, but the daily Relative Strength Index (RSI) now places the asset in the overbought territory. Despite this, there is no immediate bearish reversal on the 4-hour chart. While the RSI and the 4-hour MA show bearish signals, these indicators have not yet translated into a meaningful change in the price structure.
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‎For a bearish trend to materialize, the most recent lower low would need to be broken, signaling the beginning of a decline. Until then, the price remains in an overall bullish trend, with no clear indication of a trend reversal.

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