- Bitcoin’s rising wedge pattern suggests potential breakdown if price closes below $113K on the daily chart.
- $120K rejection and declining momentum point to a weakening trend that may lead to a short-term correction.
- A breakdown could trigger a retracement toward the $95K zone, aligning with previous consolidation support.
Bitcoin is approaching a technical inflection point as it tests the lower boundary of a rising wedge pattern. Traders are closely watching the $113K level, where a daily close could signal a deeper corrective move.
Bitcoin rising wedge formation nears critical breakdown confirmation
Bitcoin has been forming a rising wedge pattern on the daily chart, often associated with bearish reversals in trending markets. The current structure, visible in the chart shared by @CryptoFaibik, outlines converging trendlines from recent bullish movement.
The wedge is tightening, and price action has stalled near $120K, where a rejection zone is now clearly defined. This resistance zone, coupled with weaker candle closes, signals that buyer momentum may be fading.
$113K support holds key to short-term trend direction
The lower trendline of the wedge, just above $113K, is being tested as the market consolidates below peak levels. A daily candle closing below this support would confirm the breakdown, potentially opening the door to a correction.
A projected pullback toward the $95K to $97K area is marked in green on the chart. This aligns with previous consolidation. Until then, the pattern is not confirmed. Traders should wait for clear signals before taking action.
Bitcoin declines slightly as traders monitor rising wedge setup
Bitcoin trades at $116,694 after falling 1.66% in the past day and losing 2.09% over the last seven days.
These movements indicate that market participants feels more uncertain as the price remains near a significant support level.
Volume remains high at $83.4 billion, indicating active interest. Market participants are staying alert for a technical breakdown, which could shift sentiment short-term.
