Bitcoin Price Analysis: Bull Momentum Gathers Steam With Flag Breakout

Bitcoin’s bullish move is gathering pace.

The number one digital currency moved well above $8,700 a few minutes before press time to hit a fresh two-month high, taking the cumulative year-to-date gain to 21%.

Also, the cryptocurrency is now up 30 percent from lows under $6,500 registered in December. The ascent looks set to continue with the hourly chart showing a bull flag breakout.

1H chart

The flag breakout indicates the temporary pause has ended and the rally from $8,100 has resumed. As per technical analysis rules, an asset rises roughly to the length of the pole or the preceding bullish move following a flag breakout.

Accordingly, bitcoin could rise to $9,030, although with the 1H RSI signaling overbought conditions, the move may not happen immediately.

Prices may consolidate largely in $8,600-$8,700 range before rallying toward $9,000.