Bitcoin ($BTC) is exhibiting a bullish pennant formation on its four-hour chart as it consolidates above the critical $116,500–$118,000 support zone. The continuation pattern suggests growing buying pressure, with technical analysis indicating that a decisive breakout above this formation’s resistance trendline – particularly when accompanied by substantial trading volume – could trigger an upward surge targeting the $130,000–$132,000 range.
Market fundamentals reinforce this optimistic technical outlook, with long-term Bitcoin holders (LTHs) maintaining their positions at near-record supply levels. This unusually strong conviction among vested investors provides significant underlying momentum for the potential rally and diminishes immediate sell-side pressure.
The current $116,500–$118,000 threshold is identified as essential for preserving Bitcoin’s bullish structure. Traders are advised to monitor this support level closely, as a sustained drop into the $112,000–$114,000 range would invalidate the current pattern and indicate potential bearish momentum.
Market participants are positioning for Bitcoin’s next directional move, with breakout confirmation resting on both technical validation and volume expansion.