Bitcoin is currently trading above $109,000, showing continued strength after two days of steady gains on the lower timeframes. Price action has been gradually grinding higher, and now it’s pressing against the upper boundary of the bullish flag we’ve highlighted in previous updates. This move has the right structure and momentum behind it, but the real test is whether bulls can follow through. If this breakout sticks, it could set the tone for the next leg up. If not, we might be looking at another trap. Let’s dig into the price action and see what’s unfolding.

Analyzing the Charts

On the 1-hour chart, Bitcoin has been climbing steadily, with price action picking up momentum after breaking above the $108,500 zone. That move cleared a key short-term resistance and signaled growing bullish pressure. More importantly, the bullish flag that formed on the 1-hour timeframe yesterday is now starting to break to the upside, which adds further weight to the ongoing upward move.

If this breakout plays out fully, the immediate upside target sits around the $112,000 level. It is the next key area to watch based on the measured move from the flag structure.

Shifting to the daily timeframe, things start to look more interesting. Price has now pushed above the larger bullish flag we’ve been tracking for days, and it’s beginning to show early signs of a breakout. This level has acted as strong resistance recently, so how the price behaves here will be key in confirming the move.

The breakout isn’t confirmed just yet. Bitcoin still needs to close a daily candle above the flag with strong volume behind it to validate the move. At this point, both scenarios remain on the table. If price holds above this zone and gains momentum, we could finally see a push toward the $140,000 target that’s been on the radar for weeks. On the flip side, if volume dries up and momentum fades, a drop back below $100,000 to sweep liquidity wouldn’t be out of the question.

Possible scenarios for Bitcoin The 4-hour chart is also showing signs of strength, with an inverse head and shoulders pattern starting to form. This is typically seen as a bullish reversal setup. While the structure looks solid and the short-term bias remains bullish, caution is still needed. Volume has not picked up meaningfully yet, and with summer generally being a slow period for the Bitcoin market, the risk of a fakeout is still in play.

Final Takeaway: What is Next for Bitcoin (BTC)?

Bitcoin is currently trading above $109,000 and is showing strong signs of bullish momentum on both the lower and higher timeframes. While the price is attempting to break out of a bullish flag, the move still needs confirmation through a strong candle close and higher volume. If that happens, we could see BTC push towards the $112,000 level in the short term and possibly even retest the $140,000 zone. However, if volume remains weak, there’s still a chance this breakout turns into a fakeout and sends the price below $100,000.

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