Bullish Pennant Forms as Bitcoin Holds $118K — Can BTC Hit $250K?
Bitcoin is hovering around $118,000, showing signs of forming a bullish pennant pattern that has drawn increasing attention from traders and analysts. Technical indicators suggest the cryptocurrency may be on the brink of a significant breakout, echoing a similar setup observed in June that preceded a strong price rally.
Analyst Crypto Fella noted this pattern on X, stating, “Bitcoin is forming a clean bullish pennant again. This pattern seems familiar to me.”
The accompanying charts reveal a clear consolidation phase within descending resistance and flat support levels, reinforcing the potential for an upward move.
Technical Setup Points to Short-Term Breakout
On KuCoin’s 4-hour chart, Bitcoin is forming lower highs against steady support at $116,000. This convergence is typical of a bullish pennant, often indicating market indecision before a potential continuation of the existing trend.
The pattern includes three visible touchpoints on the descending trendline, with bulls defending the $116,000 region multiple times. If this support holds, Bitcoin could resume its upward move, targeting the $124,000 to $126,000 area in the near term.
Meanwhile, the daily chart on Binance reveals a similar setup. A previous breakout from a nearly identical structure occurred in mid-June, pushing Bitcoin from around $105,000 to over $117,000, a 10% surge within a short period. Notably, Bitcoin is trading at $118,548, following a 0.58% rise in the past day.
Analyst Predicts Rally to $175K–$263K
Beyond short-term gains, market analyst Egrag Crypto has identified a larger trend. In a recent analysis, he noted that Bitcoin has formed its third inverted broadening triangle since 2023, a structure that has previously led to significant rallies.
The first two instances resulted in gains of 135% and 60% following breakouts in October 2023 and October 2024. Egrag projects three possible outcomes, with the most conservative showing a 95% rise from recent breakout levels. This places Bitcoin’s next possible top between $175,000 and $220,000, with a bullish case extending as far as $263,000.
Adding to the bullish sentiment, Trending Bitcoin highlighted a striking similarity between the 2020–2021 Bitcoin bull cycle and the current 2024–2025 market pattern. It shows Bitcoin breaking past resistance and entering a consolidation phase that closely mirrors the previous cycle’s buildup before a major surge.
Based on this fractal pattern, Bitcoin could be poised for a powerful rally toward $250,000 if history repeats itself. This suggests a significant bullish opportunity ahead, as the market gears up for a breakout similar to the last cycle, but potentially with even greater upside.
While many analysts believe Bitcoin would have an extended rally above $200,000, Glassnode analyst James Check doubts the possibility.
Check warned that without strong support, any rapid rise could quickly reverse. He called the $200K target a “big move” and “very improbable” in the short term, though Check remains bullish on Bitcoin’s future long-term.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
