Bitcoin Price Eyes $100K as Bullish Flag Takes Shape

Bitcoin price is nearing $100,000 as a bullish flag formation emerges on the market chart. Following the SEC's approval of the industry, traders have returned, bringing an end to the bearish cycle. The Treasury Department's recent decision to purchase bonds at twice its usual rate indicates the Trump administration's commitment to boosting asset values, regardless of the Fed's support.

However, the rally might be facing a temporary ceiling, as analysts anticipate a high probability of a September rate hike from the U.S. central bank. This increased likelihood is attributed to the high inflation levels, which are almost double the Federal Reserve's target. The surge of net inflows into Bitcoin-linked ETFs, amounting to $3.5 billion in August, suggests that Wall Street remains optimistic about cryptocurrencies despite the Federal Reserve's cautious approach.

The Crypto Fear and Greed Index currently stands at 73, signaling a bull market sentiment. On the daily chart, Bitcoin has developed a bullish flag pattern, which typically forms following a significant price movement and usually results in a resumption of the rally. If the price surpasses $80,000, it would confirm the start of BTC's next leg upward, potentially reaching $100,000.

The strong inflows into Bitcoin ETFs mirror the enthusiasm witnessed during the previous bull market, further reinforcing investors' belief in a forthcoming rally. Currently, positive momentum appears to be waning, as the Relative Strength Index (RSI) has fallen below its signal line, indicating a temporary consolidation phase. For Bitcoin to maintain its rally, the key support level to monitor is the 200-day exponential moving average (EMA) at $72,500. As long as the price remains above this level, the rally is expected to persist.