Bitcoin News Today: Bitcoin Forms Bull Flag Pattern, Eyes $121,100 Breakout for $129K Surge

Bitcoin’s recent price action has formed a potential bull flag pattern, with analysts closely monitoring critical resistance and support levels that could determine its next trajectory. The cryptocurrency has consolidated between $113,600 and $121,100, a range defined by key Fibonacci retracement levels and technical indicators. A breakout above $121,100, the immediate resistance, could signal renewed bullish momentum, potentially propelling prices toward $129,600 and $133,800 if momentum holds [1]. Conversely, a decline below $113,600, which aligns with the 0.382 Fibonacci level, would test the resilience of the pattern but remain within a typical corrective phase [1]. Analysts emphasize that as long as Bitcoin remains above $106,000, the medium-term bullish structure remains intact, underscoring the importance of this threshold as a safeguard against deeper corrections [1].

The consolidation phase has drawn attention to the $115,000–$120,000 range, described as a “liquidity trap” where deceptive breakouts might lure buyers before a potential retest of key levels [2]. Traders and analysts argue that a sustained move above $120,000 could validate the bull flag pattern, potentially leading to a measured move toward $200,000—a target cited by multiple experts [2]. This optimism is supported by short-term positioning, with 66% of options call volume reflecting aggressive bullish bets [3]. However, risks remain. A breakdown below $110,800 could trigger a retest of $102,000, while ETF outflows and capital shifts in the crypto market pose additional headwinds [8].

Technical indicators further highlight the significance of the current setup. A bullish divergence on the 4-hour RSI suggests waning bearish momentum, while price action remains compressed between the 43.3 and 45.4 SMAs, signaling a potential breakout [4]. The consolidation within the liquidity trap has also attracted strategic positioning, with analysts cautioning that a deceptive breakout could precede a retest of critical levels [2]. Meanwhile, broader market dynamics, including reduced volatility linked to ETF activity, suggest that extreme price swings—once characteristic of crypto markets—may be tempered by institutional participation [7].

Despite bullish forecasts, risks persist. The $115,000–$120,000 range must hold firm to avoid a breakdown scenario. A failure to reassert control above $112,000 could invalidate the bull flag pattern and trigger a reassessment of risk appetite [6]. For now, the balance of evidence favors a continuation of the upward trend, with technical and fundamental factors aligning to support a breakout. Analysts remain cautiously optimistic, though they acknowledge the need for vigilance in navigating potential volatility.

As the market awaits a resolution, Bitcoin’s next move will be pivotal. A sustained rally above $120,000 would not only confirm the bull flag but also reinforce its role as a cornerstone of the digital asset class. Conversely, a breakdown could reignite short-term volatility, testing the resilience of long-term holders. The coming weeks will be critical in determining whether the pattern resolves as expected.

Source:

[1] [Bitcoin Enters Bull Flag Pattern as Analysts Eye Key Breakout Levels](https://coinmarketcap.com/community/articles/6885ac6e4d505071e03a872b/)

[2] [Bitcoin Consolidates in $115000-$120000 Liquidity Trap as Analysts Predict Upside Breakout](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-115-000-120-000-liquidity-trap-analysts-predict-upside-breakout-2507/)

[3] [Calls, Breakouts, and Bullish Bets: Inside Crypto's Hot Streak](https://medium.com/@powertrade_options/calls-breakouts-and-bullish-bets-inside-cryptos-hot-streak-july-25-2025-f52b12c60708)

[4] [Hyperliquid (HYPE) Price Prediction: $77 Target in Sight as Bull Flag and Fundamentals Align](https://bravenewcoin.com/insights/hyperliquid-hype-price-prediction-77-target-in-sight-as-bull-flag-and-fundamentals-align)

[6] [Bitcoin Price Prediction: $1 Million BTC Incoming? 'Digital Gold' Thesis Backed by Millionaire Analyst Tom Lee](https://cryptorank.io/news/feed/d89d9-bitcoin-price-prediction-1-million-btc-incoming-digital-gold-thesis-backed-by-millionaire-analyst-tom-lee)

[7] ['Parabolic Bull Markets and Devastating Bear Markets Are Over' — BTC Analyst](https://www.xt.com/en/blog/community-news/2025-07-26T20:50:18.000Z)

[8] [Bitcoin: Overextended Rally Faces Key Test Amid ETF Outflows and Capital Shift](https://ng.investing.com/analysis/bitcoin-overextended-rally-faces-key-test-amid-etf-outflows-and-capital-shift-209887)