Bitcoin News Today: Bitcoin's Pennant Pattern Suggests $135K Surge as $120K Resistance Tests

Bitcoin’s recent consolidation between $115,000 and $120,000 has sparked speculation about a potential breakout to $135,000, according to technical analysis and on-chain data. The cryptocurrency has faced stiff resistance at the $120,000 level, with bears successfully pushing the price down from this threshold in early April. However, bulls have maintained a defensive stance, preventing a decline below $115,000, which suggests lingering buyer resilience. Over the past three days, a $285.2 million outflow from U.S.-based spot ETFs has been recorded, reflecting short-term caution among investors as they await a directional move [1].

The 20-day simple moving average (SMA), currently at $115,961, and the RSI’s position in positive territory indicate a bias toward upward movement. Analysts highlight a key resistance zone at $123,218, which, if breached, could reignite the uptrend and drive Bitcoin toward $135,729—potentially extending to $150,000 [2]. This scenario hinges on buyers overcoming overhead supply, as the 4-hour chart shows moving averages flattening and RSI near the midpoint, signaling a temporary equilibrium between supply and demand. A sustained close above $123,218 would confirm bullish control, while a drop below $115,500 could accelerate selling pressures, dragging the price to $110,530 [2].

The current phase of consolidation near all-time highs has drawn comparisons to a “pennant pattern,” a technical formation often preceding sharp price surges. Traders are monitoring the $120,000 level as a critical inflection point. A failure to break above this threshold may prolong uncertainty, while a successful breakout could validate broader macroeconomic optimism, including risk-on sentiment and ETF liquidity dynamics. Notably, the absence of significant volume spikes suggests the market remains in a testing phase, with both bulls and bears awaiting a catalyst to tip the balance [2].

Market participants caution against overreliance on technical forecasts, emphasizing that volatility and shifting sentiment could disrupt even the most structured scenarios. While the potential move to $135,000 represents an ambitious target, it remains contingent on structural resistance and the sustainability of ETF inflows. Investors are advised to exercise prudence, as rapid reversals or prolonged stagnation are possible if the $120,000 level continues to act as a psychological barrier.

Source: [1] [Bitcoin Consolidation Expected to End With Impulse Move to $135K: Data] [https://cointelegraph.com/news/bitcoin-consolidation-expected-to-end-with-impulse-move-to-dollar135k-data] [2] [Pennant — Trading Ideas on TradingView] [https://www.tradingview.com/ideas/pennant/]