- Bitcoin bulls test $118.5K resistance, aiming to confirm a breakout from wedge pattern.
- Whales have accumulated 218K+ BTC since March, signaling strong long-term holder activity.
- MACD signals caution, but RSI and steady support suggest momentum may favor the upside.
Bitcoin is trading in a narrow range as bulls attempt to confirm a breakout from a long-standing wedge formation. Price remains close to the key $118,500 level, which, if cleared, could signal the start of a fresh rally. At the time of writing, Bitcoin was priced at $118,518.
Bulls Attempt to Confirm Wedge Breakout Above $118,500
Bitcoin has moved within a symmetrical wedge pattern on the 4-hour chart, showing lower highs and higher lows. This compression phase has narrowed in recent days, with price now testing the upper boundary near $118,500. Bulls are trying to push through the resistance to confirm a breakout.
A recent candle closed slightly above the wedge resistance, breaking the descending channel formed earlier this month. According to analysis prepared by TradingView users, this breakout could lead Bitcoin toward the $125,000 level if sustained. The move would mark a continuation of the uptrend that began earlier in July.
Support around $117,000 holds firm and Bollinger Bands are tight which indicates reduced volatility. The RSI stands at 59.13, reflecting healthy momentum. The MACD remains in positive territory but is showing a mild bearish crossover, signaling short-term caution.
On-Chain Metrics Suggest Long-Term Accumulation Continues
On-chain data shows steady buying activity by large holders, despite mixed short-term trading signals. According to data from Santiment, wallets holding between 10 and 10,000 BTC have added over 218,000 BTC since March. These wallets now hold more than 68% of total supply.
Meanwhile, the Coinbase Premium Index turned negative for the first time since May 29. According to an observation by CryptoQuant, this change may reflect weaker US spot demand. However, other indicators point to stable market structure, including flat futures funding rates at 0.01 and a taker buy/sell ratio of 0.9.
Despite sell pressure, price remains above key levels, showing strength from passive buyers. Analysts note that Bitcoin is holding above the Ichimoku Cloud and key EMAs. A breakout above $118,700 could trigger moves toward $120,000–$124,000 later this week.
