Bitcoin holds above bear flag, eyes major $80,600 resistance for potential rally or pullback.

Bitcoin has broken out of a bear flag pattern and is currently holding above this formation, with the $80,600 level acting as a key resistance. The price recently opened a candle above this resistance, signaling bullish momentum, but faces strong barriers including the 200-day SMA and a CME futures gap near $84,600. While short-term indicators show overbought conditions suggesting a possible pullback, the weekly chart highlights $80,600 as a critical make-or-break point for the bulls. The outcome this week could determine whether Bitcoin continues its rally or faces a downturn, influenced also by global uncertainties like the Middle East conflict and U.S. stock market highs.