Bitcoin (BTC) Price Analysis (Jul 21, 2025): Pennant Formation Builds but Breakout Remains Elusive

Bitcoin is currently trading near $118,000 and continues to move sideways on the lower timeframes. As discussed in earlier updates, this consolidation phase aligns with growing activity in the altcoin market. After a strong move earlier this month, Bitcoin has cooled off, with price action holding steady. Attention is now shifting toward altcoins, which often leads to slower momentum for BTC. This kind of sideways drift could persist, and there's room for a minor pullback before any new breakout attempt. Let’s take a closer look at the charts to assess where Bitcoin might be headed next.

Analyzing the Charts

The 1-hour chart shows Bitcoin stuck in a tight consolidation range, unable to build enough momentum for a breakout. This lack of movement has kept BTC in check, but it's created room for altcoins to gain traction. With Bitcoin holding steady, capital is rotating into altcoins, fueling their short-term rallies.

On the 4-hour chart, a bullish pennant pattern has clearly formed, signaling that a breakout could be on the horizon. However, the breakout hasn’t happened yet. Price is still consolidating with healthy volume, and the ongoing rotation into altcoins might slow down Bitcoin’s move in the immediate term.

There’s a real possibility that the breakout lacks strong momentum, leading to another rejection near the $120,000 level. If that plays out, Bitcoin will likely stay range-bound for a while longer. A failed breakout could send the price back toward the $116,000 support zone. If that area gives way, the next support to watch sits just below $112,000. From a short-term Bitcoin price prediction standpoint, this suggests a cautious outlook until key resistance or support levels give way.

With altcoin season gaining momentum and trading volume holding steady within the consolidation zone, Bitcoin may continue to hover around current levels for some time. The market appears content, ranging here before any decisive move takes shape.

Final Takeaway: What is Next for Bitcoin (BTC)?

Bitcoin is trading near $118,000 and continues to move sideways on the lower timeframes. While a bullish pennant has formed, the breakout hasn’t happened yet. There’s still a chance of rejection near $120,000, which could keep the price in consolidation or even trigger a short-term correction. With altcoin season picking up, Bitcoin might stay quiet for a bit longer before making its next major move.