Bitcoin is showing signs of renewed momentum after confirming a breakout from a bullish formation. Analysts suggest that if key technical levels remain intact, BTC could surge toward the $144,000 target in the coming months.

Bull Flag Formation Confirms Upside Potential

BTC recently closed above the upper resistance of a bull flag pattern—a classic continuation setup formed during its rapid climb to $105,000. The breakout projects a target of $144,000, based on the height of the flagpole and Fibonacci extensions.

This level is seen as a psychological milestone. Analysts emphasize that maintaining weekly closes above the breakout zone would preserve the bullish trajectory and strengthen market conviction.

Golden Cross Echoes Past Pre-Rally Signals

A recent Golden Cross—where the 50-day moving average crossed above the 200-day—adds to the bullish case. Similar setups in late 2024 led to a brief 10% dip, followed by a powerful 60% rally. A parallel move has begun in Q2 2025, mirroring that historical pattern.

Technical momentum and volume behavior also resemble those pre-breakout conditions, reinforcing the idea of continued upside if current structures hold.

Derivatives Data Reveals Crowded Short Market

On-chain and derivatives indicators suggest bullish pressure may accelerate. A sharp imbalance in liquidation data shows that a 10% BTC increase would liquidate $15 billion in shorts—far more than the $9.5 billion in longs at the same magnitude of decline.

Funding rates have turned negative, signaling excessive bearish bias. If BTC surpasses $110,000, short squeezes could trigger rapid upward movement, potentially igniting the path toward $144,000.

With technical alignment, historical parallels, and market positioning all favoring bulls, Bitcoin appears primed for a significant advance—provided resistance levels break and selling pressure remains one-sided.

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