Bitcoin Price Eyes $144K After Bull Flag Confirmed: Is the Rally On?

Key Insights:

• Bitcoin price breakout from bull flag pattern targets $144K if momentum holds steady.
• Over $15B in shorts risk liquidation if Bitcoin pumps 10% from the current level.
• Whale accumulation is at historic highs, signaling strong upside conviction.

Bitcoin formed what traders described as a textbook bull flag, a continuation pattern often linked with strong upward moves. With the breakout confirmed, analysts projected a potential price target of $144,000, citing rising institutional activity and technical confirmation.

Bull Flag Breakout Establishes New Target for Bitcoin Price

According to Merlijn The Trader, Bitcoin price has decisively broken out of a textbook bull flag formation. In May, the setup began with an upward move that formed the flagpole, and this was followed by a downward pattern that served as the flag.

The price of the leading cryptocurrency crossed the upper boundary of the flag configuration this week, confirming it broke out from resistance.

At the time of writing, Bitcoin price was trading near $105,454. Technical analysis shows that adding the flagpole height to the breakdown point gives a price target around $144,000. This formation is very dependable when the market is going up strongly.

Liquidation Heatmap Skews Bullish

Cas Abbé pointed out that data from liquidations proves that taking short positions carries much greater risk than long ones. He noted that if Bitcoin price rallies just 10% from current levels, nearly $15.11 billion in short positions could be wiped out. On the other hand, a 10% decline would cause about $9.58 billion worth of long liquidations.

That suggests the market could experience a short squeeze, since there is an extra reason to push the price up once liquidation comes into play. His analysis also included a decline in funding fees across perpetual futures, which is a good sign of the number of short positions and overcrowding. Typically, when funding becomes negative first and the price begins to rise, it is common for large shorts to be squeezed.

Abbe believes that the imbalance will correct soon and projects that $109,000 to $110,000 will be the main level to watch out for. If Bitcoin price breaches that zone with momentum, the $144,000 target from the bull flag could come into focus faster than anticipated.

Golden Cross History Supports Upside

According to Greg Miller, a market analyst, Bitcoin daily chart is now forming a Golden Cross. Some believe the 50-day moving average going above the 200-day moving average signals bullish trends because it indicates prices are rising steadily.

The last Golden Cross formed in late 2024. After a brief dip of roughly 10%, Bitcoin price surged more than 60% in the following weeks. A similar setup occurred this quarter, with BTC price experiencing a comparable dip. According to Miller, this price action could lead to a huge increase, as past trends usually result in the price rising around $130,000.

Whales Increase Accumulation at Pace Not Seen Before

Meanwhile, Coinvo’s on-chain data confirmed that large-scale investors are quietly positioning for the next move. The number of BTC held by whale addresses has increased a lot in the past two weeks.

Coinvo observed that this whale buying pattern is now outpacing previous cycles, including those seen ahead of Bitcoin’s 2020 and 2021 rallies. In such cases, there was typically a build-up of whales before a major market surge. Many experienced traders are accumulating more assets to benefit from the expected price rises.

As Coinvo noted, “Whales are buying at a pace we’ve never seen before. They must know something we don’t.” This unprecedented level of accumulation suggests that large holders anticipate a significant move ahead.

With whale accumulation, technical breakouts, and short-squeeze potential aligning, analysts agreed that Bitcoin’s next few sessions could be decisive. If BTC broke above $110,000, the probability of reaching the $144,000 bull flag target would increase sharply.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.