Bitcoin Price Forms Bull Flag As RSI Confirms Momentum Shift

TLDR

• Bitcoin price holds a bullish flag, signaling consolidation rather than trend exhaustion.
• Higher-timeframe RSI breakout confirms a bullish momentum reset.
• Whale long de-risking has not triggered a price breakdown.
• Structural support remains intact, favoring continuation over reversal.

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Bitcoin price is showing signs of structural strength, with multiple technical indicators aligning across various timeframes. Analysts point to bullish continuation patterns, momentum confirmation, and resilient positioning data as evidence of controlled consolidation. These signals suggest BTC price is stabilizing near key levels while preparing for its next directional phase.

Bitcoin Price Holds Bull Flag

According to market analyst Kamran, the four-hour chart highlights a textbook bullish flag formation following a strong impulsive rally. After the initial advance, Bitcoin price entered a controlled pullback that respected a clearly defined support zone. This type of consolidation typically reflects profit-taking rather than trend exhaustion.

Within the structure, higher lows have continued to form during the retracement phase. The behavior indicates that buyers remain active despite reduced momentum. The analyst noted that volume has also tapered off, which aligns with positive bullish flag behavior rather than distribution.

The chart suggests that Bitcoin price is compressing before attempting another expansion. A projected breakout remains valid as long as the price holds above structural support. If resistance is cleared, the formation favors continuation within the prevailing trend rather than a reversal.

RSI Breakout Signals Bitcoin Price Momentum Shift

Meanwhile, analyst Trader Tardigrade focused on momentum indicators using a three-day Relative Strength Index chart. Historically, RSI breakouts from long-term descending resistance lines have preceded strong price expansions. In this case, RSI has once again broken above a similar trendline.

The chart compares the current RSI structure with two previous breakout events. Both earlier instances aligned with sustained upside moves following extended corrective phases. Tardigrade highlighted that these signals reflected momentum re-acceleration rather than overbought conditions.

Higher-timeframe RSI signals carry greater significance than short-term readings. According to the analyst, this breakout suggests Bitcoin price momentum is resetting bullishly. While near-term volatility may persist, the RSI structure implies underlying strength if price action confirms.

Whale Positioning Shows De-Risking Without Breakdown

Additionally, another analyst, Ted Pillows, examined positioning data, with a focus on Bitfinex whale activity. The chart shows a prolonged period of aggressive long accumulation followed by a steady reduction in open long exposure. This shift indicates large players are locking in profits rather than adding new leverage.

Despite the reduction in long positions, price has remained elevated. This divergence suggests that selling pressure has been absorbed by spot demand or other market participants. Pillows noted that such behavior often appears during mature rally phases.

Historically, partial long closures have not signaled immediate reversals. Instead, they often precede consolidation or slower upside expansion. As long as Bitcoin price holds above key support levels, the broader trend structure remains intact, despite a moderating momentum.

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