Bitcoin breaks above a key bull flag pattern, triggering a massive short squeeze that analysts suggest could drive the cryptocurrency toward a $98,000 price target.
Bitcoin broke above a bull flag pattern with a massive short squeeze, projecting a move toward $98,000.
Bitcoin surged over 5% to hit $85,285, confirming a bullish breakout from a daily chart flag pattern. The move, fueled by $384 million in short liquidations, positions the asset for a potential 15% rally toward the $98,000 technical target. While momentum remains strong, the daily RSI has entered overbought territory, signaling a possible short-term consolidation phase.
A bull flag is a continuation pattern where a sharp vertical price increase (the flagpole) is followed by a period of consolidation (the flag), typically signaling that the previous uptrend will resume.
The price surge was exacerbated by a massive short squeeze, where $384.71 million in bearish positions were liquidated, forcing traders to buy back assets and adding significant upward pressure.