Bitcoin is once again making headlines, and this time, it’s for all the right reasons. After weeks of slow movement and uncertain market sentiment, the top cryptocurrency may be gearing up for a big breakout. According to a well-known crypto analyst known as Merlijn The Trader, Bitcoin is showing a bull flag pattern on its daily chart—a classic sign of strong upward momentum.

This technical pattern, combined with a positive signal from the MACD indicator, could push Bitcoin to new highs of $144,000 in the near future. Here’s a closer look at what’s happening on the charts and what it could mean for investors.

Bitcoin Holds Steady Above $107K After Positive Week

At the time of writing, Bitcoin (BTC) is trading above $107,000 after gaining nearly 4.9% in the past week. Although the monthly gains are more modest—around 1%—this price action suggests the bulls may be regaining control after a period of consolidation.

This recovery is a welcome sign for traders and investors who have been watching Bitcoin closely, waiting for the next big move. And according to Merlijn The Trader, that move may already be underway.

Bull Flag Pattern: A Signal for Bitcoin’s Next Rally?

So, what exactly is a bull flag pattern, and why are analysts so excited about it?

In technical analysis, a bull flag is a chart formation that signals a continuation of an uptrend. It usually forms when a strong rally (the “flagpole”) is followed by a period of sideways or downward price movement (the “flag”). This pause often reflects a short-term consolidation before the asset continues its climb.

In Bitcoin’s case, the flagpole began in early April, when BTC surged from around $74,000 to over $110,000 in less than two months. Since then, Bitcoin has moved mostly sideways between $101,000 and $110,000, forming the flag part of the pattern.

According to Merlijn, the recent candle action suggests that Bitcoin may have broken out of this flag, a move that typically precedes another leg up in price. If this breakout is confirmed, the next target could be as high as $144,000, representing a potential 34% gain from current levels.

MACD Crossover Confirms Bullish Momentum

Merlijn also pointed to a bullish signal on the MACD indicator (Moving Average Convergence Divergence), a tool commonly used to measure market momentum. Specifically, the MACD line has crossed above the signal line, which is often interpreted by traders as a buy signal.

This is the first positive crossover on the MACD chart in June and adds more weight to the bullish case for Bitcoin. Importantly, this crossover occurred just as BTC is testing the top boundary of the bull flag, making the timing particularly significant.

What Happens Next? Analysts Watch for Confirmation

While this setup looks promising, it’s important to note that technical patterns require confirmation. Traders will be watching closely for a strong daily close above the flag boundary and increased trading volume, which could validate the breakout.

If confirmed, Bitcoin could enter a new phase of bullish momentum, potentially racing toward the $144,000 target suggested by the flagpole measurement. This price point would represent a new all-time high and likely trigger widespread investor excitement.

Caution Still Advised Despite Bullish Signs

Despite the growing optimism, analysts like Merlijn still urge caution. While technical indicators point to a bullish breakout, the cryptocurrency market is known for its volatility and unexpected swings. As always, investors should conduct their own research and consider risk management before entering positions.

As Merlijn notes, “Front-running the move could be profitable, but chasing after a confirmed breakout may lead to FOMO-driven mistakes.”

Final Thoughts: Bitcoin’s Rally May Be Just Getting Started

Bitcoin’s recent performance and technical indicators suggest that a big move may be on the horizon. If the bull flag pattern holds true, and the MACD crossover confirms bullish momentum, $144,000 could be within reach in the coming weeks.

For now, Bitcoin traders and long-term holders alike will be watching the charts closely. The next few days could be critical in determining whether BTC continues its climb—or stalls at current levels.

As always in crypto, anything can happen. But for now, the bulls may be back in charge.