Bitcoin is trading above the $107,500 level and showing strength on the lower timeframes. Yesterday, the price dipped to around $105,500 but bounced back with a noticeable increase in volume. On the hourly chart, momentum appears to be shifting upward, which is encouraging in the short term. That said, the 1-day timeframe still shows a bullish flag pattern forming. While this structure typically signals a potential continuation to the upside in the coming weeks, there’s still room for a short-term pullback before any breakout. Let’s break it down further:

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Analyzing the Charts

Looking at the 1-hour chart, Bitcoin has printed a few strong green candles back to back, and the short-term trend does look bullish for now. But even with this move, we’re not seeing signs of a major breakout yet. If you zoom out to the higher timeframes, the price is still stuck in a consolidation phase. So while things look positive on the surface, it’s too early to call it a bigger shift in momentum.

Switching to the 1-day timeframe, the bullish flag we mentioned earlier is still intact. This pattern usually points to continuation, but in the short term, it could mean a move lower before any breakout. If the flag plays out as expected, Bitcoin might revisit the $100,000 zone or even dip slightly below it. A bit of consolidation in that area wouldn’t be unusual before the next major leg up.

Back on the 1-hour chart, not much has changed. We’re still watching the same key levels from the previous analysis. Bitcoin did briefly break below the $106,500 support, but the move didn’t follow through with heavy selling. That level still matters in the short term. On the upside, $108,800 remains the resistance to beat. Until the price pushes above that, we’re likely to see more sideways movement.

If Bitcoin breaks below $106,500 again in the short term, there’s a good chance it will head toward the $104,500 to $104,000 zone next. That level could act as temporary support, but the broader picture suggests more downside pressure. The bullish flag on the daily chart remains valid, but before any breakout, a deeper pullback looks likely. A drop below $100,000 in the coming days wouldn’t be surprising if this structure continues to play out.

Final Takeaway: What’s Next for Bitcoin (BTC)?

Bitcoin is trading above $107,500 and showing short-term strength on the lower timeframes. However, the price is still consolidating, and the bullish flag on the daily chart suggests a possible dip before the next move up. If BTC drops below $106,500, we expect it to test the $104,000 zone, and there’s a real chance it could break below $100,000 in the coming days. For now, we’re staying cautious and not placing any trades until the price either reclaims $108,800 or completes a deeper correction.