As Bitcoin (BTC) continues to trade within its local range, the cryptocurrency eyes a trend continuation, aiming to go on uncharted territory again. Despite the bullish setup, an analyst suggests that investors start to become more cautious as the weeks progress.<\/p>\n
Since the early July breakout, Bitcoin has been trading within a crucial price range<\/a>, hitting its latest all-time high during this period. The flagship crypto has been hovering between $114,000-$120,000, retesting the local lows on Friday before recovering the range highs over the weekend.<\/p>\n Amid this performance, market watcher Crypto Patel highlighted that BTC is trading inside a bull flag formation in the 4H chart, which could lead to an 8%-12% move once broken out.<\/p>\n According to the analysis, if the cryptocurrency successfully breaks above the pattern\u2019s descending resistance, near the $120,000 mark, its price could see a surge toward the $130,000 barrier for the first time.<\/p>\n On the contrary, a rejection from this area could send Bitcoin toward the bull flag\u2019s support, around $114,000, once more. The analyst warned that despite the key support\u2019s strength, a breakdown below this level would invalidate the bullish pattern and risk a drop to the $100,000 level or below.<\/p>\n In a Monday analysis<\/a>, analyst Rekt Capital also discussed BTC\u2019s bull flag in the weekly chart. He noted that Bitcoin closed last week above the bull flag top despite the Friday drop, \u201cpreparing and positioning itself for a confirmed breakout.\u201d<\/p>\n Therefore, the start-of-week pullback could be considered a volatile post-breakout retest if the cryptocurrency closes this week above $119,200. The analyst explained that \u201cprice has an entire week to do that; in fact, price could downside wick below the Bull Flag bottom to form a potential Diamond-Shaped candlestick formation in the downside wicks.\u201d<\/p>\n \u201cIt makes sense why price needs to dip,\u201d he detailed, \u201cit also makes sense for price to dip via the perspective of the newly formed Weekly CME Gap.\u201d<\/p>\n As Daan Crypto Trades pointed<\/a> out, BTC opened the week with a new CME Gap between $118,297 and $120,035, which was immediately closed on Monday, as the price retraced to the $117,000 mark.<\/p>\n Notably, the flagship crypto has been closing its CME Gaps at the start of the week for the past five weeks, \u201cbuilding quite the streak at this point.\u201d To the trader, \u201cthe longer this goes on, the more of a self-fulfilling prophecy it will become.\u201d<\/p>\nBTC\u2019s Rally Running Out Of Time?<\/h2>\n