Bitcoin ($BTC) is undergoing a critical post-breakout retest of its Monthly Bull Flag, a significant technical structure that has historically preceded extended uptrends. Following the latest monthly candle close, Bitcoin’s price is now pulling back to confirm the breakout, with $96,700 identified as a key support level that needs to hold for continued bullish momentum.
According to Crypto Analyst @Rekt Capital on X, The formation of a Bull Flag on the monthly chart has been a central focus for technical analysts. This pattern, which consists of a strong upward move followed by consolidation, typically signals trend continuation if the breakout holds. Bitcoin successfully closed its latest monthly candle above the upper resistance of the Bull Flag, confirming its exit from the formation. However, price action suggests a post-breakout retest is underway, a natural technical step in establishing support before the next potential leg higher.
The pullback has brought Bitcoin back toward $96,700, a crucial level that analysts, including Rekt Capital, have highlighted as the key threshold to maintain bullish momentum. A sustained hold above this zone would further reinforce the breakout validation, paving the way for potential price continuation toward new highs.
As of February 20, 2025, Bitcoin is trading at $97,890, reflecting a slight pullback from its recent highs. A comparison with price action earlier in February shows Bitcoin was trading at $98,813 on February 2, indicating a modest decline amid the post-breakout retest phase.
The monthly chart highlights $96,700 as a primary support level, with analysts monitoring for any downside wicks that could test liquidity around this region. Historically, such retests provide healthy market structure, allowing Bitcoin to establish a new base before resuming its uptrend.
Bitcoin’s Next Move: Scenarios and Retest
Bitcoin’s next move hinges on whether $96,700 holds as support or if price experiences a deeper pullback before resuming its uptrend. Bullish Scenario: If Bitcoin holds above the Bull Flag top and reclaims $98,000, it would signal strong buying pressure at the retest zone, increasing the likelihood of a continuation toward $100,000 and beyond. Bearish Scenario: If Bitcoin fails to hold $96,700, a deeper correction could follow, potentially testing previous support levels near $92,000-$94,000 before regaining momentum.
Market participants are closely watching how Bitcoin responds to its first major post-breakout retest, as its ability to maintain key support could determine the strength of the ongoing uptrend. The broader cryptocurrency market has maintained a bullish outlook, with Bitcoin’s breakout fueling optimism among investors. However, macroeconomic factors, including interest rate decisions and institutional inflows, remain influential in shaping Bitcoin’s trajectory.
Analysts are also keeping an eye on on-chain data, particularly exchange inflows and long-term holder activity, which could provide further insight into Bitcoin’s market dynamics. Bitcoin’s price action is currently undergoing a crucial retest phase, confirming its exit from the Monthly Bull Flag. $96,700 remains the critical level to watch, with a successful hold reinforcing the bullish case for further gains. As Bitcoin navigates this pivotal retest, the coming weeks will be essential in determining whether the cryptocurrency resumes its trend continuation or faces a deeper pullback before reclaiming higher levels.
