Bitcoin has staged an impressive rally in the past trading sessions, breaking above a short-term consolidation pattern that appears to be a bullish flag.
This could clear the way for an extension of the earlier rally from the March lows around $77,000, possibly targeting the $100,000 barrier then the all-time highs back in December.
Current bitcoin price levels show that bulls have regained control of the market following the double top formation that triggered the selloff earlier this year. After breaking below the neckline support at $93,500 and finding a bottom near $77,100, Bitcoin has steadily recovered, climbing past several key Fibonacci retracement levels from the previous downtrend.
Recovery Momentum Gathering Steam
Most notably, Bitcoin has now successfully broken above short-term holding pattern. This breakthrough suggests that the correction may have run its course, with Bitcoin potentially resuming its longer-term uptrend trajectory.
The moving averages are showing positive signals as well. While the 100 SMA (blue line) had been above the 200 SMA (red line) throughout most of the correction, they appeared to be narrowing their gap during March. Now, however, we can observe that the moving averages are starting to diverge again with the 100 SMA maintaining its position above the 200 SMA, confirming that the path of least resistance is to the upside.
On the price chart, Bitcoin is trading well above both moving averages, which have now flattened and begun turning upward, providing dynamic support levels for any potential pullbacks. This positioning reinforces the bullish outlook and suggests that dips may be shallow and present buying opportunities.
Indicators Point To Sustained Strength
The technical oscillators are aligning with the bullish narrative seen on the price chart. The stochastic indicator has moved into bullish territory and continues to track higher, suggesting momentum remains strong. It has not yet reached the overbought region, indicating there may be more room for price appreciation before a potential pullback occurs.
Similarly, the MACD (Moving Average Convergence Divergence) shown at the bottom of the chart has crossed above its signal line and moved into positive territory. The increasing histogram bars reflect strengthening bullish momentum, supporting the case for continued upside.
While Bitcoin had been trading within a consistent rising channel since mid-2023, the sharp correction in early 2025 tested this structure. The successful defense of the March lows around $77,100 and subsequent recovery above the $90,000 level demonstrates that the long-term uptrend remains intact.
For traders looking for key levels, immediate resistance sits at the December 2024 highs near $109,800, which represents the next major target for bulls. A clean break above this level would likely pave the way for new all-time highs.
Markets seem to have had a risk-on reaction, which has been beneficial for the crypto sector, to the latest FOMC decision, as well as the prospect of a US-China trade meeting. As Bitcoin approaches the $100,000 milestone, market participants should remain alert for any signs of exhaustion, though the current technical setup suggests the momentum favors further gains in the near to medium term.
