Bitcoin forms a bullish rising flag pattern, predicting a possible breakout

Bitcoin briefly dipped below $50,000 earlier this week as the market saw its strongest correction since the FTX crisis. The subsequent recovery, however, pushed the price of the asset above $57,000.

Despite chaos in the broader market, bitcoin’s technical charts are showing a bullish flag, while on-chain data reveals increasing buying pressure, bolstering the bullish outlook.

Strong bullish forecast

According to CryptoQuant’s latest post, a promising bullish signal has emerged for BTC with the crypto asset forming an ascending flag pattern on technical charts since March this year. This classic pattern often precedes significant upward moves, suggesting that bitcoin could experience a breakout in the coming months.

Supporting this technical analysis, CryptoQuant’s Onchain NetFlow metric revealed a noticeable increase in buying pressure, further highlighting the growing demand for bitcoin. This alignment between the technical pattern and the chain’s metrics reinforces the bullish outlook, indicating strong potential for future price gains.

There was also a significant upswing in whale transactions on August 5 and 6, as Santiment pointed out. The number appears to have reached levels not seen since the first week of April. This surge in activity is linked to a rapid build-up of wallets with between 10 and 1,000 BTC, which coincided with the recent price drop that briefly pushed bitcoin below $50,000.

The increase in whale transactions during this period suggests a phase of strategic hoarding, with large owners seizing the opportunity to buy bitcoins at lower prices.

Inbound volatility?

IntoTheBlock’s latest tweet notes that Bitcoin’s 30-day volatility has reached its highest level since March, indicating a period of increased market uncertainty. This increase in volatility often indicates significant changes in trend, suggesting that bitcoin could experience substantial price movements in the near future.

“Bitcoin’s 30-day volatility reached its highest point since March of this year. This increase in volatility indicates possible trend changes and increased market uncertainty.”

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