Bitcoin News Today: Bitcoin Consolidates Above $116,500 Awaiting Bullish Breakout

Bitcoin is currently consolidating in a bullish pennant pattern, hovering above the $116,500–$118,000 support level following its recent price surge. This pattern is characterized by a series of higher lows and lower highs, forming a symmetrical triangle that suggests a continuation of the upward trend. The repeated tests of the downward-sloping trendline indicate weak seller pressure, setting the stage for a potential breakout toward the $130,000–$132,000 zone.

Analyst Kamran Asghar has identified this pattern on the 4-hour chart, noting that it is a classic continuation pattern following a strong upward movement. The $116,500-$118,000 area has consistently drawn buyers and represents a point of short-term support. The downward-sloping trendline, which forms the upper limit of the pennant, has been tested multiple times, each time signifying less seller resistance. A decisive breakout above this trendline, especially with strong volume, could pave the way for a rally toward the $130,000–$132,000 range, which aligns with the measured move of the pattern.

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 support box, the trend is bullishly biased. However, if the price fails to maintain this zone, it may slip into the mid-$114,000 to mid-$112,000 zone, invalidating the formation. The current structure suggests that the market is at 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 further supports the bullish outlook. Long-term holders (LTHs) continue to hold near all-time high levels, indicating that they are not yet taking profits. Historically, major cycle tops only emerge when LTHs begin significant distribution, which has not happened yet. This behavior suggests that the bull market still has room to run, potentially for another six months or more. Until distribution begins, the long-term structure remains intact, supporting the possibility of BTC’s next powerful leg upward.