Bitcoin Price Eyes $100K as Bullish Flag Takes Shape

Bitcoin (BTC) has managed to trim its yearly losses to just 11%, as traders jumped on board once again following the SEC’s nod to the industry.

Although the initial euphoria has eased a bit, we still think the market’s reaction could have put an end to the top crypto’s bearish cycle.

The Treasury Department’s decision to inject twice the amount it usually buys back in the bond market also signaled that the Trump administration is committed to pushing asset valuations to higher levels, with or without the Fed’s support.

However, the rally may have hit a temporary ceiling, as analysts once again see high odds that the U.S. central bank will raise rates in September.

Wall Street Positions for the Continuation of BTC’s Rally

Data from FedWatch shows that the probability of a 25 basis point increase during the next FOMC meeting shifted dramatically, jumping from 40% a week ago to 65% at the time of writing.

Inflation is still at a high level, nearly doubling the Fed’s target, and that creates a strong incentive for central bankers to push rates a bit higher.

That said, the fact that the market did not tank shortly after these probabilities changed indicates that the billions of dollars in short liquidations we saw last week may have deterred bears from opening new short positions.

Net inflows to exchange-traded funds (ETFs) linked to Bitcoin also remain strong. In August, these vehicles brought in $3.5 billion from investors, pushing the monthly total to the highest level since September 2025.

Back then, BTC was trading at $110,000 or so. Hence, Wall Street seems to have embraced a risk-on attitude toward cryptos despite the Fed’s hawkish stance.

The Crypto Fear and Greed Index also confirms investors’ bullish attitude, as this sentiment gauge currently sits at 73, meaning that the crypto market is in “Greed” mode. This is a significant shift compared to the overall attitude a month ago, when this same metric stood at 36.

Bitcoin Takes Temporary Breather But Keeps Eyeing Rally to $100K

Turning to the daily chart, we can see that Bitcoin has formed a bullish flag pattern that tends to form after a strong price movement.

This is a continuation setup that indicates a temporary pause as early buyers take profits and late buyers position to capitalize on the next big move.

If the price breaks past $80,000, that should confirm the beginning of BTC’s next leg up. In that case, we expect a continuation of the rally toward $100,000 at least. ETF inflows confirm that Wall Street’s eagerness to get into Bitcoin resembles that of the previous bull market.

Hence, all of this accumulation suggests that investors are expecting a resumption of the rally at some point.

For now, we can see that positive momentum is fading a bit, as the Relative Strength Index (RSI) has dipped below the signal line. This also confirms the beginning of a temporary consolidation phase.

The key support to watch at this point for BTC would be the 200-day exponential moving average (EMA) at 72,500. As long as the price stays above that mark, this rally is still alive and kicking.