Bitcoin Bulls Cling to $90k as Key Support Holds Inside Bull Flag

Source: Cryptonews Original Title: Bitcoin bulls cling to $90k as key support holds inside bull flag Original Link:

Price Action Analysis

Bitcoin has repeatedly defended the $90,000 horizontal support level, with intraday wicks below the level failing to close, keeping the short-term bull flag intact. Despite downward pressure, the cryptocurrency maintained its support throughout trading sessions, with price rejections at horizontal resistance indicating contested levels.

Technical Formations

Daily and weekly charts show a confluence of a bull flag and green ascending triangle pattern. The price action has dipped to the bottom of the bull flag on the daily timeframe, raising questions about whether the price will continue downward to a major trendline or hold the formation.

The ascending triangle on the weekly chart represents a key formation to monitor, with a potential breakout providing a path to important horizontal resistance levels.

Indicator Signals

Stochastic RSI readings have reached bottom levels across multiple timeframes, suggesting potential upside momentum could develop. This oversold condition typically hints at near-term recovery potential.

Key Scenarios

If the $90,000 support fails to hold, the next potential target could be a major trendline combined with another horizontal support level, potentially invalidating the bull flag formation.

Conversely, a breakout from the ascending triangle during the weekend or into the following week could send the price toward key resistance levels after a likely pause at round-number levels. Whether this represents sustained upward momentum or a temporary rally within a broader downtrend will depend on the strength of the breakout and subsequent price action at resistance.

Bitcoin was trading near the $90,000 level as technical analysts monitored these key formations for potential directional clarity.