Traders and analysts are closely monitoring BTC ($110,314.00)’s price action, with some projecting an ambitious target of $250,000 by December.

Technical Setup: Bullish Pennant Formation

On the daily chart, Bitcoin is displaying a classic bullish pennant, a continuation pattern formed after a strong uptrend followed by consolidation between converging trendlines. This setup often precedes another upward move if resistance levels break.

BTC eyes a crucial breakout as bulls target upside from a bullish pennant next week. Source: @cas_abbe via X

Charting analyst Cas Abbé highlighted the scenario on social media: “$BTC bullish pennant formation. Next week is going to be very crucial. Bulls are expecting a breakout to the upside, while bears are expecting more pain.”

Current consolidation around $110,000, coupled with growing trading volumes, indicates building momentum. Short-term projections from technical analysts suggest Bitcoin could first test $134,000, supported by positive retail inflows and overall market optimism.

BTC Ambitious Target: $250,000

Some market observers are now projecting that Bitcoin could reach $250,000 by year-end, though this would require a 127% surge from current levels. To put this in perspective, the largest monthly gain in Bitcoin’s history—during October 2021—was roughly 89%.

Is this really Bitcoin headed to $250K by December? Source: @ali_charts via X

While technically possible, achieving such rapid growth depends on multiple factors. Analysts caution that the market is exposed to $4.2 billion in short positions, which could limit upside momentum. Additionally, potential consolidation above $105,000 remains a realistic scenario before any further advance.

Macro Tailwinds: Fed Liquidity Injection

A potential macro catalyst is a recent $29 billion liquidity injection by the Federal Reserve, executed through overnight repo operations. Historical parallels suggest that similar actions in 2020 preceded Bitcoin’s all-time high, raising optimism among traders.

Fed Injects $29B—Could Bitcoin ($BTC) Repeat 2020’s All-Time High? Source: @Danny_Crypton via X

While the exact impact of the Fed’s intervention is still debated, liquidity injections historically tend to support risk assets, including Bitcoin. Investors see the move as a potential trigger for another leg of BTC’s rally, reinforcing bullish sentiment in the market.

Market Risks and Sentiment

Despite these bullish signals, Bitcoin faces notable risks. A failure to maintain support in the $105,000–$108,000 range could trigger a pullback toward $100,000. Technical indicators, including the daily RSI, show some weakness, highlighting short-term vulnerability.

Additionally, the historical success rate of bullish pennants is around 54%, meaning nearly half of breakouts either fail or underperform expectations. Traders should remain cautious, balancing potential upside with the risk of sudden volatility.

Final Thoughts

If Bitcoin successfully breaks above the $115,000–$120,000 resistance zone, the next targets could range between $135,000 and $150,000 in the near term. Sustained momentum, supported by macro liquidity and retail participation, could make a run toward $250,000 feasible, although it remains a high-risk scenario.

Bitcoin (BTC) was trading at around $110,230, up 1.19% in the last 24 hours at press time. Source: Bitcoin Price via Brave New Coin

Conversely, if Bitcoin loses key support levels or broader market conditions turn adverse, it may enter a prolonged consolidation phase. In such a case, price movements could stabilize around $105,000–$110,000 before resuming any major trend.