Bitcoin News Today: Bitcoin's Technical Setup Suggests a $127K Bull Run Is Charging Up

Bitcoin has formed a new double-bottom pattern near $112,000, with the price bouncing off this level and moving back above $117,000. Analysts are drawing comparisons to similar patterns earlier in the year, which were followed by sharp price rallies. In April, Bitcoin surged over 50%, rising from approximately $86,000 to $125,000, while a June pattern led to a 25% increase, bringing the price back to $125,000. If the current pattern follows a similar trajectory, Bitcoin could surpass $127,000 by the end of the third quarter. This formation, identified by ZYN, is seen as a potential catalyst for renewed bullish momentum.

Further technical analysis points to an inverse head-and-shoulders pattern, as highlighted by Merlijn The Trader. The left shoulder was formed in December 2024, the head in April 2025 near $70,000, and the right shoulder in June 2025. The neckline of the pattern has been broken and retested near $113,000, which analysts consider a confirmation of the breakout. If the price continues to hold above this zone, it could signal a move toward higher levels, with the magnitude of the move potentially matching the scale of the pattern.

Futures market sentiment has also shifted in favor of Bitcoin, according to analysis by CryptoQuant’s Darkfost. BTC futures sentiment has moved into positive territory after five consecutive days of negative readings. The sentiment index, which combines net taker flows, open interest, and long/short volumes, reflects short-term positioning in the derivatives market. The recent recovery into positive territory mirrors a similar shift in early August, which coincided with a price rebound. The current move suggests that bearish pressure has eased, with the sentiment index currently sitting at -0.7, indicating a possible continuation of the upward trend.

However, recent on-chain data from Glassnode suggests that Bitcoin may still face volatility before finding a stable support level. Short-term holders (STHs) are currently realizing losses, as reflected in the Spent Output Profit Ratio (SOPR) metric, which has dropped across three investor cohorts. The SOPR is now floating between 0.96 and 1.01 for these groups, indicating that mild loss-taking is occurring. If this trend continues and the SOPR drops below ~0.9, it may signal a capitulation among these investors, potentially forming a local bottom in the price.

The current price of Bitcoin hovers around $116,000, with key resistance at $114,000 becoming a focal point for traders. Analyst Rekt Capital has emphasized the significance of this level, noting that Bitcoin must convincingly reject resistance here for a bullish continuation. Meanwhile, fellow trader Daan Crypto Trades highlighted a potential support range between $109,850 and $111,900, suggesting that a move below this range could signal a weakening market structure. Exchange order-book data from CoinGlass shows liquidity lining up at $112,900, indicating the market is bracing for potential price action around this level.

The broader macroeconomic backdrop remains uncertain as traders await the Federal Reserve’s Jackson Hole symposium. Recent odds of a September rate cut have decreased, with the prediction market platform Kalshi showing a 36% probability of no cut. The CME Group’s FedWatch Tool remains more optimistic, giving 25% odds that rates will remain unchanged. The outcome of Fed Chair Jerome Powell’s speech at the symposium will be closely watched, as it could influence market expectations for future rate cuts and, by extension, Bitcoin’s price trajectory.

Source: [1] Is Bitcoin's $127K Breakout Loading After Double-Bottom? (https://www.fastbull.com/news-detail/is-bitcoins-127k-breakout-loading-after-doublebottom-news_6100_0_2025_3_9059_3/6100_ETH-USDT) [2] When Will Bitcoin Bottom Out? This Could Be The Signal ... (https://www.mitrade.com/insights/news/live-news/article-3-1063430-20250823) [3] Bitcoin Ignores US-EU Trade Deal With $114K In Focus (https://cointelegraph.com/news/bitcoin-price-dip-hinges-on-114k-as-markets-shrug-off-us-eu-trade-deal)