Bitcoin (BTC) is currently trading below the $120,000 level, having corrected from an all-time high (ATH) of nearly $123,000 reached on July 7. Analysts suggest the current consolidation could signal a potential setup, with several technical patterns pointing toward further upside.
Bull Pennant Indicates Potential 15% Rally
Recent technical analysis indicates BTC is forming a “bull pennant,” a classic continuation pattern that follows a strong price increase. These pennants signal consolidation near a recent high before an “explosive” breakout.
Analysts project a potential upside target of $136,500, representing a potential 15% gain from current levels if the pattern resolves positively.
Analyst Titan of Crypto described the pattern as a “bull pennant breakout targeting $140,000,” though the less ambitious $136,500 figure is also cited.
However, the success rate for bull pennant breakouts stands around 54%, considered moderate but not particularly high-confidence.
Alternatively, an inverted head-and-shoulders pattern identified on a longer-term chart could also target $140,000, while some analysts cite projections even higher, to $155,000 based on a daily chart golden cross.
Meanwhile, modest predictions point toward a symmetrical triangle breakout targeting $125,000.
Support Levels Could Be Tested First
Given the recent ATH and subsequent pullback, analysts believe remaining selling pressure could push BTC lower against strong support levels.
$115,000 is identified as a key support zone, potentially offering a “liquidity sweep” that could replenish selling pressure before further attempts to reach new highs.
Analysis of bid clustering on order books suggests liquidity could be absorbed around the $115,000-$116,100 range.
The prevailing view holds the market structure could see BTC testing $115,000 before resuming its uptrend.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making any decisions.
