Bitcoin News Today: Bitcoin Hovers Near $117,500 in Elliott Wave Triangle as Analysts Anticipate Breakout

Bitcoin’s price action has drawn attention to a potential breakout following the formation of an Elliott Wave triangle pattern between $116,000 and $120,000. As of July 26, 2025, Bitcoin (BTC) hovers near $117,500, consolidating within a narrowing range that has persisted for 12 hours on Binance charts [1]. This pattern, characterized by converging support and resistance levels, typically signals an impending directional shift after a period of indecision [2]. Analysts note that a breakout above $120,000 could extend the previous bullish trend, while a breakdown below $116,000 risks retesting lower support zones [3].

Technical indicators reinforce the market’s cautious stance. The Relative Strength Index (RSI) remains around 51, indicating a balanced state between buyers and sellers, while the Moving Average Convergence Divergence (MACD) shows minimal divergence, reflecting weak momentum [3]. The Ichimoku Cloud analysis further supports a bullish bias, as BTC stays above the cloud, suggesting potential for a rally [1]. However, volume data paints a mixed picture: trading activity has declined by 15% to $90.8 billion, and open interest has dropped 1.81% to $84.22 billion, signaling reduced liquidity and leveraged positions [1].

Market fundamentals align with a bullish outlook. Bitcoin’s market capitalization reached $2.33 trillion, with a 1.27% daily gain, as of the latest 24-hour trading session [3]. With 19.89 million BTC in circulation—close to the maximum supply of 21 million—analysts highlight the asset’s growing scarcity as a tailwind for long-term appreciation [3]. CoinMarketCap data underscores the significance of maintaining price above $117,500, which could position BTC closer to $120,000 [3]. Conversely, a failure to sustain above $117,000 risks a pullback toward $115,500, though no immediate signs of a directional move have emerged [3].

Forecasts from analysts are divided. Some predict a bullish continuation, projecting a surge toward $150,000 if the triangle pattern validates [5]. Others caution against a bearish breakdown below $115,724, which could trigger a retest of earlier support levels [7]. The 4-hour chart reveals a tight tug-of-war near the triangle’s apex, where buyers and sellers are locked in a stalemate [4]. A decisive move above $118,800 may reignite upward momentum, whereas a breakdown below $118,000 could signal a bearish shift [3]. Immediate resistance at $118,800 and $119,300 remains critical, with a breach potentially propelling BTC toward $120,500, while a failure to hold above $118,000 risks a retest of $117,500 and further losses toward $117,100 [3].

The broader market mirrors Bitcoin’s consolidation, with Ethereum and XRP also exhibiting range-bound behavior. However, Bitcoin’s dominance in the crypto ecosystem means its movement within this pattern could influence overall risk appetite [4]. Market participants are closely monitoring macroeconomic developments and regulatory updates, which may tip the balance once the pattern resolves [4]. For now, the triangle acts as both a catalyst for volatility and a barrier to clarity, with the market in a holding pattern.

Liquidity clusters around $114,000 and $118,500 add complexity, as stop orders could trigger significant price swings if triggered [9]. Meanwhile, the descending triangle referenced in other analyses—such as the pressure on $116,000 support—intensifies the uncertainty [2]. The tightening of the triangle near its apex has heightened expectations of a near-term resolution, though no definitive signals have emerged [4].

Sources: [1] [Bitcoin News Today: Bitcoin Consolidates 120K 15 Volume Drop Technical Indicators Signal Impending Breakout](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-120k-15-volume-drop-technical-indicators-signal-impending-breakout-2507/) [2] [Bitcoin Price Today: Bitcoin Declining Below the $116K ...](https://bravenewcoin.com/insights/bitcoin-price-today-bitcoin-declining-below-the-116k-support-will-mean-a-bearish-triangle-breakout-heres-what-it-means) [3] [Bitcoin Investor Price Model Signals Healthy Growth](https://www.mitrade.com/insights/news/live-news/article-3-978551-20250723) [4] [Triangle — Trading Ideas on TradingView](https://www.tradingview.com/ideas/triangle/) [5] [BTC Price Prediction: $150K in Sight as Technicals and...](https://www.btcc.com/en-IN/square/Bitcoin%20News/681582) [7] [Are Traders Walking Into a Bitcoin Bull Trap at $118K?](https://www.mitrade.com/au/insights/news/live-news/article-3-982644-20250724) [9] [Bitcoin Eyes Potential Rally Beyond $120000 After Recent ...](https://www.bitget.com/news/detail/12560604881641)