Bitcoin is consolidating in a bullish pennant, coiling above $116,500–$118,000 support after its recent price rally.
Repeated trendline tests signal weak seller pressure, setting BTC up for a potential breakout toward the $130,000–$132,000 zone.
Long-term holders maintain strong positions, with no sign of profit-taking, suggesting this bull phase still has momentum left.
Bitcoin ($BTC) is coiling for its next breakout move, forming a bullish pennant just above strong support levels.
Bullish Pennant Tightens Above $116.5K–$118K Zone
According to analyst Kamran Asghar, Bitcoin is showing a classic consolidation pattern following its recent price surge. The 4-hour chart displays a clear bullish pennant formation, often viewed as a continuation pattern after a strong upward move. BTC is currently holding above the $116,500–$118,000 zone, an area that has consistently attracted buyers and acted as a short-term floor.
https://twitter.com/Karman_1s/status/1946664863939600409
The descending trendline forming the upper boundary of the pennant has been tested multiple times, with each attempt reflecting weaker seller resistance. A clean breakout above this trendline, especially with a strong volume push, could open the way for a rally toward the $130,000–$132,000 range — a target aligned with the measured move of the pattern.
Market Structure Shows Signs of Breakout Readiness
The tightening price structure and reduced volatility within the pennant are strong indicators that Bitcoin is preparing for a breakout. As long as BTC remains above the current support box, the pattern favors a bullish continuation. If price fails to hold this zone, a slide toward the $114,000–$112,000 range could be triggered, invalidating the setup.
The current structure indicates that the market is entering a decision point. With price compression nearing its limit, a breakout could occur soon — either confirming the bullish pennant or negating it.
On-Chain Data Adds Fuel to Bullish Outlook
On-chain analyst cyclop (@nobrainflip) adds context to the technical view, noting that long-term holders (LTHs) continue to hold near all-time high levels. Historically, major cycle tops only emerge when LTHs begin significant distribution. This hasn’t happened yet.
Based on past cycles, this behavior suggests the bull market still has room to run — potentially another six months or more. Until distribution begins, the long-term structure remains intact, supporting the possibility of BTC’s next powerful leg upward.
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