Bitcoin News Today: Bitcoin surges 31% to $118,000 forming bull pennant pattern

Bitcoin has surged from $90,000 to $118,000, forming a bull pennant pattern near the 10-day moving average. This pattern follows a confirmed inverse head-and-shoulders formation, with the right shoulder marked near $102,000 and the breakout zone around $106,000, indicating a strong bullish trend. The current price action shows a pennant formation tightening around the $118,000 level, with a projected continuation above $124,000.

The 10-day moving average, marked at $118,225.26, acts as short-term dynamic support and is the base of the pennant structure. Technical traders are closely monitoring this level for confirmation of the current consolidation. The pennant has narrowed with clean trendlines, forming a triangle just above the 10-day moving average. If Bitcoin holds this level, the setup may suggest further upside, with a potential breakout above the pennant’s upper trendline propelling the price toward the $124,000 resistance zone.

The inverse head-and-shoulders setup is a traditional bullish reversal pattern. Bitcoin formed the left shoulder below $100,000, the head near $90,000, and the right shoulder close to $102,000. After reclaiming the neckline around $106,000, Bitcoin rallied quickly to the $118,000 range. A fair value gap (FVG) zone is visible between $114,000 and $116,000, defined as a wide-range candle body with no wick overlap, often left when the price moves quickly. The chart’s author noted that unfilled FVGs frequently occur during rapid surges. The price now trades just above this gap, and if the pennant breaks upward, it may confirm that the FVG acted as a successful launchpad.

Analysts are now awaiting confirmation for the next upward move as Bitcoin consolidates above $116,000 support. The current daily structure mirrors previous continuation setups seen during strong bullish phases. All eyes are on the breakout trigger above the pennant, with traders anticipating whether this bull pennant breakout will push Bitcoin into fresh highs above $124,000. If the consolidation holds and the 10-day average provides support, technicals suggest more upside is possible. The community is abuzz with anticipation, with some members jokingly asking if the breakout will bring them good fortune, to which the chart’s author replied, “Bigger levels to come,” suggesting higher targets ahead.