Bitcoin News Today: Bitcoin's 4H Pennant and Bearish Daily Wedge Signal Tug-of-War at Key Levels 115k and 122k

Bitcoin’s price action is caught in a technical tug-of-war as traders weigh conflicting signals between a bullish 4-hour (4H) pennant and a bearish daily wedge. Analysts highlight the divergent patterns, which reflect short-term optimism and longer-term caution, creating a pivotal moment for BTC price dynamics. Captain Faibik, a prominent crypto analyst, notes that Bitcoin is forming a rising wedge on the daily chart—a bearish reversal pattern marked by tightening price consolidation between $115,000 and $125,000 over the past 30 days. The pattern’s breakdown risk lies below $115,000, with potential targets at $95,000–$98,000 if sellers gain control [1]. Conversely, the 4H chart suggests a bullish pennant, a continuation pattern forming after a recent $110,000–$120,000 rally, with resistance at $122,000 and a projected target of $130,000 if buyers reclaim momentum [2].

The daily wedge’s bearish implications are underscored by waning bullish volume and a bearish PO3 (Price Over Price Over Price) setup, which could trigger a liquidity sweep to trap late buyers at current highs [1]. The pattern’s upper boundary has been tested repeatedly without a decisive breakout, raising concerns about structural weakness. Meanwhile, the 4H pennant’s converging trendlines indicate tightening consolidation, with Bitcoin trading near $117,739 as it coils for a potential move. Analysts remain cautious, however, as volume declines suggest momentum divergence despite the bullish setup [1].

Technical indicators further complicate the outlook. The RSI and MACD show diverging signals, with RSI trending lower despite stable price action, hinting at fading buying pressure [2]. On the other hand, the 20-period exponential moving average (EMA) and Bollinger Bands support the pennant’s bullish case, as Bitcoin remains above critical EMAs within a narrowing volatility range. The Parabolic SAR indicator’s flattening dots signal a pause in upward momentum but not an outright reversal [2]. On-chain metrics like On-Balance Volume (OBV) remain elevated at $5.2 billion, reflecting sustained accumulation, though this could shift if the wedge breaks to the downside [2].

Traders are closely monitoring key levels. A confirmed breakout above $122,000 would validate the 4H pennant’s continuation thesis, potentially reigniting the uptrend. Conversely, a breakdown below $115,000 on the daily wedge could extend losses to $100,000. Volume patterns and EMA crossovers will be critical in confirming direction, as these metrics often signal trend sustainability [2]. Captain Faibik emphasized the uncertainty but noted that the 4H pattern offers a clear bullish roadmap, provided buyers hold the wedge’s lower boundary [1].

Market sentiment remains fragmented. Short-term traders are capitalizing on the 4H pennant’s potential for rapid gains, while longer-term investors remain wary of macro risks like regulatory scrutiny and broader market corrections. The recent delay in Bitcoin ETF approvals has exacerbated volatility, affecting altcoins like XRP, which face similar consolidation patterns [2]. Bitcoin’s dominance metric remains steady at 45%, suggesting institutional demand persists despite near-term uncertainties [2].

Key risks include external shocks such as Federal Reserve rate hikes or geopolitical tensions, which could amplify Bitcoin’s sensitivity to macro trends. Liquidity levels around $120,000 will also determine whether the bullish pennant sustains momentum or collapses under bearish pressure. Analysts caution that while the 4H pattern offers a compelling bullish case, the daily wedge’s bearish implications cannot be ignored, particularly if Bitcoin fails to reclaim $125,000 [2].

For now, the market remains in a state of anticipation. A decisive breakout above $122,000 could align with the bullish pennant’s thesis, while a breakdown below $115,000 would validate the bearish wedge. Traders are advised to monitor volume and EMA crossovers for confirmation, as these metrics often provide early signals of trend sustainability. Until clarity emerges, Bitcoin’s price is likely to remain range-bound, with volatility offering both opportunities and risks for position holders.

Source: [1] [Bitcoin Price Analysis: Bullish 4H Pennant vs Bearish Daily Wedge](https://coinmarketcap.com/community/articles/6881fbe8f1106366bc254752/) [2] [Bitcoin Trade Ideas — BITSTAMP:BTCUSD](https://www.tradingview.com/symbols/BTCUSD/ideas/?sort=recent)