Bitcoin is consolidating within a bullish pennant pattern just below the 120,000 level, following a sharp rally from the June lows. Price action has compressed between converging trendlines, forming higher lows and lower highs — a classic continuation formation in an uptrend.

Importantly, BTC remains well above prior resistance (now support) at 112,000, with both the 50-day SMA (109,837) and 200-day SMA (95,838) trending upward. This suggests strong medium- to long-term bullish structure.

Momentum indicators support the case for continuation:

MACD remains in positive territory, albeit with a slight bearish crossover, hinting at near-term indecision.

RSI is holding around 59.6, just below overbought, reflecting consolidation rather than distribution.

A breakout above the pennant resistance and psychological 120,000 barrier would likely trigger renewed bullish momentum, targeting fresh highs. Conversely, a breakdown below 116,000 could expose 112,000 as a key retest zone.

Bias: Bullish continuation favored while above 112,000. Watch for breakout confirmation from the pennant.

-MW

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