Bitcoin’s continued rally is fueled by strong technical patterns and increasing on-chain activity.
Technical indicators show a rising flag formation
Technical analysis shows that Bitcoin is forming a rising flag pattern, which is a bullish continuation signal. This pattern usually indicates a short consolidation phase after a sharp price increase, followed by another rise. The rising flag pattern indicates that the price of Bitcoin may break out to the upside in the near future, providing investors with an optimistic outlook.
On-chain data suggests increasing buying pressure
On-chain data from blockchain analytics platform CryptoQuant shows a clear increase in buying pressure. The Onchain NetFlow chart reflects the trend of buyers accumulating Bitcoin, which effectively balances the selling pressure. This escalating buying pressure is a key factor supporting the possibility of Bitcoin price increases.