Bitcoin (BTC USD) price held a tight range near recent highs within converging trendlines. The range followed a strong advance earlier in the month.
At the time of writing it Bitcoin (BTC) price was trading at $108,901.80 at the time of writing, down 1.14% over the past 24 hours.
It fell 5.4% over the week and 10.67% over the past month. Market participants assessed a bullish pennant and a fresh Federal Reserve repo injection.
Bitcoin (BTC USD) Price Consolidated Near Key Resistance
Technical traders described the price structure as a bullish pennant. The pattern formed after a sharp rally and brief consolidation.
A bullish pennant typically signals continuation after a break above resistance. In practice, traders watched the upper trendline for confirmation.
On many charts, a key resistance level sat near $134,000. That area aligned with recent swing highs and the pattern’s cap, though Bitcoin remained below its all-time high of about $126,198.
Volume picked up as the range matured. Rising activity often preceded larger directional moves in liquid markets.
Analysts cited steady spot demand and firmer retail flows. Those inputs supported calls for a $134,000 test if resistance gave way.
Derivatives data also shaped expectations. The Bitcoin market showed about $4.2 billion in outstanding short positions across venues.
Short positioning created both risk and opportunity. A fast break higher sometimes forced covering and increased upside torque.
Not all signals pointed higher. Daily momentum readings softened, which hinted at fading near-term strength.
For context, the Relative Strength Index measured momentum on a zero-to-100 scale. Higher readings indicated strong demand, falling readings flagged weakening momentum.
Macro Liquidity and Repo Backdrop
Macro conditions influenced positioning through liquidity channels. The Federal Reserve added roughly $29 billion via overnight repo operations.
Traders compared this move with interventions during 2020. Back then, abundant liquidity coincided with strong risk-asset rallies.
Repo operations temporarily increased cash available to primary dealers. Easier funding often flowed through broader markets.
Digital assets sometimes benefited when dollar liquidity improved. The effect varied by risk appetite and volatility.
Market commentators also pointed to the potential connection between liquidity and digital assets. As analyst @Wealthmanagerrr noted on X, “Liquidity injections and risk assets often move in tandem.
Watch for the spill-over into crypto when repo steps up.” This view reflected a broader sentiment that higher repo balances could create favorable conditions for risk assets, including Bitcoin.
This backdrop gave bulls an additional narrative to track. Liquidity tailwinds and constructive charts reinforced each other in many playbooks.
Forecasters also circulated ambitious year-end scenarios. Some outlooks highlighted a path toward $250,000 if momentum re-accelerated.
That path required a gain near 125% from current levels. Such an increase would exceed typical monthly advances.
For reference, Bitcoin recorded its strongest month with about a 90% jump in 2021. That extreme move remained a historical outlier.
These comparisons helped frame expectations. They grounded targets against prior market behavior rather than headlines.
Bitcoin Price Levels to Watch Next
The chart defined nearby support between $105,000 and $108,000. Buyers defended that band during recent pullbacks.
A clean loss of the band risked a slide toward $100,000. That level marked a round-number area that previously attracted demand.
Traders outlined a straightforward trigger on the upside. A decisive push and close above the pennant top opened a $134,000 test.
Pattern statistics tempered confidence in any single outcome. Historical studies suggested bullish pennants worked about 54% of the time.
Given that rate, technicians leaned on confirmation rather than forecasts. They prioritized break levels and closing strength over predictions.
Positioning inside derivatives could influence the path. A break higher threatened shorts, while a rejection relieved pressure.
The BTC spot tape also mattered for durability. Sustained volume and breadth supported continuation better than thin breakouts.
Macro inputs rounded out the picture. Further liquidity additions would support risk appetite, while reversals could sap momentum.
Taken together, the framework remained simple. Hold the support band, clear resistance with strong participation, and validate continuation.