- After its latest price surge, Bitcoin is lying in a bullish pennant consolidation above support of $116,500 to $118,000.
- The recurring price proceedings unveil low seller pressure and make BTC ready to experience a possible recovery to the $130,000-$132,000 range.
- Long-term holders remain in good positions, and there is no indication of profit-taking, meaning that there is still steam left in this bull run
Bitcoin ($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
Analyst Kamran Asghar asserts that Bitcoin exhibits a classic consolidation pattern after the recent price rally. The 4-hour chart depicts a typical bullish pennant pattern, which is viewed as a continuation pattern following a strong upward movement. Bitcoin (BTC) is located above the $116,500-$118,000 area, which consistently draws buyers and represents a point of short-term support.
The downward-sloping trendline making the upper limit of the pennant has been restored several times, and every time it has signified less 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. Provided that BTC manages to stay above the support box as it is currently, the trend is bullishly biased. In case the price does not maintain this zone, it may slip into the mid-$114,000 to mid-$112,000 zone, which will render the formation invalid.
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 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.
