Bitcoin Technical Analysis: Resistance Hit, Bitcoin To Likely Pullback

As discussed last week, a bull flag pattern suggested a high probability of a significant upward move in Bitcoin. This scenario played out as predicted, with Bitcoin surging from the $85,000 area to test levels near $96,000, demonstrating the effectiveness of this technical pattern.

However, the rally has encountered formidable resistance at the $96,000 mark. This level represents a critical multi-year trend line formed by connecting the cycle highs of 2017, 2021, 2024, and the recent 2025 peak. Furthermore, a parallel line drawn beneath this resistance accurately maps the key lows established between November 2024 and February 2025, which acted as support, and also defined the peak of a rebound in early March 2025 (acting as resistance then). Bitcoin's latest advance has returned its price to this primary upper resistance line.

Looking forward, a decisive breach and hold above $96,000 would open the door for a potential move towards the upper parallel trend line, currently situated around $113,000.

Alternatively, rejection at the $96,000 resistance could trigger a retracement. Initial support is expected between $87,500 and $86,500. A deeper correction would target the major support zone of $74,000-$70,000.

Based on the current chart structure, technical analysis favors the probability of a near-term pullback or consolidation below the $96,000 resistance level in the coming week.