Bitcoin’s Bull Run: A Mel Brooks Comedy of Errors? 🤣💰

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Well, well, well! What have we here? Renewed optimism in Bitcoin, you say? As if Thursday wasn’t already packed with enough excitement, the $BTC price decided to join the party, rising just over 2%, or roughly $2,500. And guess what? Friday’s looking to be a real blockbuster as the price starts to tick up again after a brief intermission. But, oh boy, with the bulls getting tired and the price inching closer to the top of the bull flag and the $118,000 resistance, is a rejection just around the corner? 🤔

Bullish News for Bitcoin, but Is the Market Running Out of Steam? 😅

Incredibly bullish news for Bitcoin keeps raining down like a confetti cannon gone wild. On Thursday, President Trump, in his infinite wisdom, signed an executive order allowing US citizens to sprinkle a bit of $BTC into their 401(k) savings plans. And just when you thought it couldn’t get any more pro-crypto, he signed another order preventing banks from turning up their noses at crypto companies. 🎉

All this good news for the crypto industry gave the price a nice little boost on Thursday, and with $BTC eyeing the top of its bull flag, there might just be enough oomph to get there. However, if we measure from the $112,000 swing low, this upside move is already at a modest 5%, and the bulls are starting to look a bit winded. We might see a few days of sideways or downward price action, which would give the momentum indicators a chance to catch their breath and maybe, just maybe, set the stage for a more reliable breakout. 🏃‍♂️💨

Price Reversal at the Top of the Bull Flag? 🤯

The 4-hour chart is a real showstopper. It’s clear that the breakout of the W pattern finally happened, pushing the $BTC price past $117,000. The long candle wick down was a classic case of the bulls trying to lift the price, only to be met with a giant “nope” from the bears. 🐻🐂

Right now, the price is clinging to life above $116,800, which might be a tenuous support. There’s a chance it could muster enough energy to push back up to the $117,450 resistance, and even reach the top of the bull flag at $118,000. But let’s be real, all those short-term Stochastic RSI indicators are practically doing cartwheels at the top, suggesting this upward push might be hitting its limit. The top of the bull flag would be the perfect spot for a reversal to kick in. 🌟💥

RSI Trend Break on Daily Time Frame 📈📉

The daily chart reveals a critical plot twist in the Relative Strength Index. At the bottom of the chart, you can see two descending trendlines. The first one was for the previous bull flag, and the second for the current one. When the first trendline broke, it led to a massive 25% price surge. Fast forward to the current bull flag, and you’ll notice that the RSI indicator line has just broken through the descending trendline, potentially confirming the breakout. 🚀

But wait, there’s still the rest of the day to go, and if the price turns back down, we could be looking at a classic fakeout. If the indicator line stays above the trendline by the end of today, though, that would be a major win for the bulls. 🎉

Can 5 Years of Bearish Divergence Be Cancelled Out? 🤞

Zoom out to the monthly chart, and you’ll see the RSI indicator lurking just below the descending trendline that stretches all the way back to Q1 of 2021. Breaking above this trendline is a do-or-die moment. If the bulls can push the price up and break the downtrend, we might see a massive upward surge. However, even if this happens, the RSI will need to keep climbing and eventually surpass 91.5 to cancel out about 5 years of bearish divergence. 🌠

This is no small feat, and it might require a game-changing event, like sovereign countries like the US deciding to buy large amounts of Bitcoin. Sure, it’s possible, but will it happen in time to save this Bitcoin bull run? Only time will tell, and in the meantime, we’re all just along for the ride. 🎢🚀

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2025-08-08 12:21