After a brief dip below the six-figure mark, Bitcoin (BTC) is showing signs of strength once again. The world’s leading cryptocurrency has gained nearly 6% in the past week, reclaiming momentum and climbing steadily towards its all-time high. While some market participants remain cautious, technical indicators and key support levels paint a promising picture for Bitcoin’s next move.

Bullish Flag Pattern Hints at Further Gains

Bitcoin’s recent surge has formed a classic bullish flag pattern on the 4-hour chart. This pattern is often seen as a continuation signal, suggesting the possibility of further upward movement.

• The flagpole formed when Bitcoin jumped from $96,968 to $107,699.
• The price then consolidated between $106,800 and $108,564, creating the flag.
• Bitcoin is now testing the upper boundary of this flag, a breakout of which could push prices higher.

Supporting this setup is the Chaikin Money Flow (CMF), which has been steadily increasing. A rising CMF points to growing buying pressure, an encouraging sign for bulls. Additionally, the Relative Strength Index (RSI) is climbing toward bullish territory, suggesting that momentum may be building in favour of buyers.

If Bitcoin breaks above $110,000, it would not only overcome a psychological resistance but could also set the stage for a run toward the $120,000 mark.

On-Chain Signals Reveal Mixed Sentiment

According to pseudonymous analyst Crazzyblockk from CryptoQuant, on-chain data suggests a lack of fresh demand for Bitcoin. He claims that new buyers are not entering the market fast enough to absorb the existing supply, which could create headwinds for a long-term rally.

“The market is in a vulnerable state. Any price rallies from here will likely struggle to overcome this wave of available supply,” the analyst warned.

This sentiment highlights a key risk: while charts look bullish, the underlying demand may not be strong enough to sustain a prolonged breakout at least in the short term.

However, Ray Youssef, CEO of NoOnes, offers a contrasting view. He believes the recent bounce is more than just technical, it’s a sign of relief in the market after a period of geopolitical uncertainty.

“The Bitcoin bounce feels more like the market exhaling… marking a technical recovery,” Youssef said.

Strong Support Between $104K and $107K

One of the key reasons for Bitcoin’s resilience is the strong support zone just below the current price.

Data from the In/Out of Money Around Price (IOMAP) model reveals that:

• Between $104,429 and $107,637, over 2 million addresses purchased approximately 1.54 million BTC.
• These holders are currently in profit, which could act as a solid buffer against downside pressure.
• This support is significantly stronger than resistance levels between $107,784 and $110,624.

This data suggests that Bitcoin has a strong base and any short-term corrections are likely to be met with buying interest. With this level of support, a move above $110,000 becomes more probable, especially if technical momentum continues.

BTC Price Prediction: All Eyes on $120K

Looking at the daily chart, Bitcoin is forming an ascending triangle, a bullish pattern made up of higher lows and stable resistance near $112,062.

This setup is complemented by a rising Awesome Oscillator (AO), which has moved into the positive territory, signalling increasing momentum.

If Bitcoin can break above the resistance and maintain volume, the next logical target would be $120,000. This level marks a major milestone and could attract fresh investor attention.

However, if bulls fail to break resistance and momentum fades, a correction is still on the table:

• First support lies near $99,520, the 0.382 Fibonacci level.
• In a more bearish scenario, BTC could slide further to around $91,761.

Still, as long as Bitcoin continues to post higher lows and hold key support, the path of least resistance appears to be upward.

Bitcoin’s recent price action presents a classic case of optimism met with cautious scepticism. The charts are clearly bullish, with breakout patterns forming and key indicators flashing green. However, concerns about weak on-chain demand and resistance near $110K could limit upside at least in the short run.