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BTC/USD
Bitcoin Reclaims $80,000 as Bull Flag Forms Ahead of Fed
Bitcoin is back above $80,000, raising hopes of renewed upside momentum. The monthly pivot and the upper boundary of its bull flag now hold the key.
Bitcoin and gold turned positive during the session, reclaiming the psychologically important $80,000 and $4,000 levels, respectively. This is an encouraging development in a crucial week for central banks. However, the initially hesitant buying suggests traders are waiting for greater clarity before committing to fresh positions. The next Federal Reserve interest rate decision is due on 28 October.
Bull flags explained
A bull flag is a consolidation pattern following a price rally. A confirmed breakout above its upper boundary signals a potential continuation of the upward move.
Bitcoin Technical Analysis: $78,000 Support Must Hold
BTC/USD is currently moving from one bull flag into another. This sequence is consistent with a developing uptrend, provided the underlying support levels remain intact.
The lower flag boundary, currently near $78,000, is critical. Holding this area would preserve the potential for renewed buying momentum. A sustained break below it would weaken the bullish structure.
On the upside, the monthly pivot at $81,190 represents the next hurdle. A weekly close above this level would provide an initial sign of strength.
Bitcoin daily chart
A Break Above $84,500 Could Unlock a $96,000 Target
To confirm a continuation of the uptrend, Bitcoin needs to break sustainably above the upper flag boundary, currently near $84,500. Only then would the pattern imply a measured price target of approximately $96,000.
The RSI(34) and its 48.5 threshold also remain in focus. Readings below this level would indicate fading momentum and weaken the bullish interpretation. Both sloping flag boundaries change over time.
Bitcoin Long and Short Trading Setups
| Scenario | Confirmation | Potential targets | Invalidation |
|---|---|---|---|
| Long: Support bounce | Confirmed bullish reaction near $78,000 | $81,190, followed by $84,500 | Sustained break below $78,000 |
| Long: Flag breakout | Daily close above $84,500 with follow-through buying | Measured target near $96,000 | Return inside the flag |
| Short: Flag breakdown | Daily close below $78,000, followed by a failed reclaim | Monthly S1 support shown on the chart | Sustained recovery above $78,000 |
Outlook: Reclaiming $80,000 is a constructive development. The broader bullish scenario still needs confirmation, first above $81,190 and subsequently above $84,500.
BTC/USD: Five-Year Price Performance
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