Bitcoin News Today: Bitcoin Traders Await Key $123,218 Breakout as Consolidation Nears $135K Target

Bitcoin’s price action has drawn renewed attention as analysts assess the likelihood of a breakout from its current consolidation phase. The cryptocurrency has been trading within a narrow range of $115,000 to $120,000, with recent data suggesting a potential surge to $135,729 or beyond. According to Farside Investors, Bitcoin’s failed attempt to surpass the $120,000 resistance level on Wednesday triggered a $285.2 million outflow from U.S.-based spot ETFs over three days, signaling investor caution. However, the price has maintained a floor near $115,000, indicating persistent buyer resilience [1].

Technical analysis highlights critical thresholds for the coming weeks. The 20-day simple moving average (SMA) at $115,961 forms the lower boundary of the consolidation pattern, while the $120,000–$123,218 zone acts as a pivotal resistance cluster. A sustained break above this range could reignite the uptrend, with the 20-day SMA’s upward slope and a positive relative strength index (RSI) suggesting a bias toward higher prices. Traders are eyeing $123,218 as a key level; a close above it could trigger a sharp rally to $135,729, aligning with a “pennant” pattern observed on TradingView charts [2].

Conversely, a breakdown below the 20-day SMA would indicate bearish momentum, potentially dragging Bitcoin to $110,530—a level tied to the neckline of an inverse head-and-shoulders pattern. A close below $115,500 could accelerate selling pressure as short-term holders exit, further testing support at $110,530. The 4-hour chart currently shows equilibrium, with RSI near the midpoint and flattening moving averages signaling a market decision point. A sustained close above $123,218 would confirm bullish control, while a drop below $115,500 risks a retest of key support [1].

Market observers note that Bitcoin’s ability to hold near all-time highs reflects buyer optimism. The tight consolidation suggests investors are retaining positions ahead of potential gains, yet the bears’ defense of $120,000 underscores the rally’s fragility if sentiment shifts. While the technical case for an upward impulse is compelling, a decisive move beyond $120,000 is needed to validate the bullish thesis.

Participants are advised to monitor on-chain metrics and ETF flows for signs of renewed confidence. A failure to sustain above $120,000 may trigger profit-taking and a retest of existing support levels. For now, the struggle between bulls and bears remains unresolved, with the outcome poised to shape Bitcoin’s short-term trajectory.

Source:

[1] [Bitcoin Consolidation May End With Rally To $135K](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/)