Bitcoin News Today: Bitcoin Traders Eye $123,218 Breakout for 12.5% Rally Toward $135K

Bitcoin’s recent price action has shown a tight consolidation phase between $115,000 and $120,000, with technical indicators suggesting a potential breakout to new highs. Despite a pullback from the $120,000 resistance level on Wednesday, buyers have prevented the price from dipping below $115,000, signaling resilience amid cautious investor sentiment. Net outflows of $285.2 million over three days from U.S.-based spot exchange-traded funds (ETFs) highlight short-term profit-taking, yet the failure to breach key support levels underscores the market’s anticipation of a decisive move [1].

The cryptocurrency is currently constrained by the 20-day simple moving average (SMA) at $115,961 and overhead resistance near $120,000. A sustained breakout above this range—specifically past $123,218—could reignite the uptrend. Analysts project that such a move could push Bitcoin toward $135,729, with further upside potential to $150,000 if momentum persists [1]. This forecast aligns with a bullish pennant pattern observed on the 4-hour chart, where the relative strength index (RSI) remains near the midpoint, reflecting balanced supply and demand dynamics. A confirmed close above $123,218 would validate the pattern’s upside potential and reaffirm buyer dominance [2].

Conversely, a breakdown below the 20-day SMA or $115,500 could trigger a corrective phase. A failure to hold above these levels might see Bitcoin test the inverse head-and-shoulders neckline at $110,530, with further downside risk if this critical support fails. Immediate support at $110,530 is crucial for bulls to prevent a broader bearish shift. The current consolidation near all-time highs suggests buyers are strategically holding positions, anticipating another upward leg. However, ETF outflows indicate short-term caution among investors [1].

The path forward hinges on Bitcoin’s ability to overcome $120,000 and $123,218 without slipping below key support levels. A sustained rally above $123,218 could confirm a new bullish phase, while a breakdown below $115,500 may accelerate selling pressure. The market remains in a critical juncture, with technical indicators and ETF flows reflecting diverging investor sentiment.

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/)