Bitcoin Forms Bullish Pennant Near $118K as Traders Watch Key Support, Is $250K Possible?

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 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.

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