Bitcoin is currently trading around $107,500 and continues to hold a bullish structure. As pointed out in our previous update, BTC is forming a bullish flag on the daily chart. This is a continuation pattern that typically breaks to the upside. For now, though, price action remains sluggish, with Bitcoin mostly consolidating and moving sideways. This slow pace isn’t surprising given the summer season, when trading volume tends to dip and volatility dries up. It’s likely that BTC continues ranging within the flag for a few more sessions before attempting a breakout. In this update, we’ll focus on the 1-hour timeframe and highlight the key levels to watch in the immediate short term. Let’s dive in:

Sign-Up on Coinflare to trade Bitcoin and other cryptocurrencies the right way. Take advantage of our exclusive offer and stand a chance to win up to $6,500 in rewards. Don't miss out!

Analyzing the Charts

Looking at the 1-hour chart, Bitcoin is currently holding support near the $106,500 level. Price has been trading above this area since the breakout last Wednesday. This zone, which previously acted as resistance, has now turned into support.

We can also see that the price is getting squeezed above this support level and is starting to form a rising wedge. This pattern is typically viewed as bearish and suggests the possibility of a short-term breakdown if support fails.

Given the current structure and ongoing sluggish momentum, Bitcoin may soon break below the rising wedge and retest the $106,500 region. As mentioned earlier, this level has acted as solid support over the past week.

There’s also horizontal resistance just below the $109,000 level. With the rising wedge in play, price is likely to head lower in the immediate short term and retest the $106,500 support. How Bitcoin reacts to that level will be key. If buyers fail to step in, the price may consolidate around $106,500. If momentum continues to fade, the next level to watch is $104,000, which has previously acted as strong support.

Switching to the 1-day timeframe, the bullish flag pattern is still intact. Price is likely to continue moving within this structure for a few more days. This is why, despite the short-term pullback, Bitcoin’s overall outlook remains bullish.

Final Takeaway

Bitcoin is currently trading around $107,500 and moving sideways on the lower timeframes. Price is holding above the $106,500 support, but a rising wedge pattern is forming, which could lead to a short-term breakdown. If that happens, we’ll likely see a retest of the $106,500 level. On the higher timeframe, the bullish flag is still valid, so the overall trend remains intact. For now, we’re staying on the sidelines and waiting to see how Bitcoin reacts to support before making any moves.