Bitcoin News Today: Bitcoin Falls 0.69% as Technical Signals Clash: Bearish Daily Wedge vs. Bullish 4H Pennant

Bitcoin’s price action is showing conflicting technical signals, with traders split between short-term bullish potential and longer-term bearish risks. On the daily chart, a rising wedge pattern suggests a potential breakdown to $95,000–$98,000 support, while the 4-hour chart hints at a continuation rally if key resistance is breached. Analysts caution that diverging momentum and volume trends add uncertainty to the outlook.

The daily rising wedge, characterized by lower highs and higher lows converging toward a critical decision point, indicates bearish pressure. Captain Faibik, a noted analyst, highlighted that Bitcoin’s failure to sustain above key psychological thresholds could trigger a breakdown. The wedge’s upper resistance has been tested multiple times, with tapering volume signaling waning bullish momentum. A bearish PO3 (Price Over Price Over Price) setup further suggests that smart money may target late buyers at recent highs, potentially leading to a liquidity sweep [1].

Currently, Bitcoin consolidates near the wedge’s resistance zone at approximately $117,739, a level that remains crucial for short-term direction. A breakdown below the wedge’s lower boundary could confirm a shift in sentiment, with downside targets in the $95,000–$98,000 range. Faibik noted that a previous range resistance has now become support, forming a key breakdown zone. Traders are urged to monitor this area closely, as technical weakness could intensify despite recent bullish positioning [1].

Contrasting the bearish daily setup, the 4-hour chart reveals a bullish pennant pattern, typically a continuation formation following an upward move. The structure is defined by converging trendlines—descending upper resistance and ascending lower support—indicating tightening price action ahead of a potential breakout. Bitcoin’s proximity to $117,739, albeit down 0.69% at the time of analysis, keeps the pennant valid. A confirmed breakout above the upper boundary could reignite bullish momentum, extending the price higher [1].

Analysts, including Faibik, emphasize that both scenarios remain viable. The 4-hour pennant favors short-term buyers, while the daily wedge warns of a potential correction. Volume dynamics and liquidity clusters will play a decisive role in confirming direction. For instance, a decline in volume during the pennant’s formation signals momentum divergence, suggesting that even bullish setups may lack conviction [1].

The market’s indecision reflects broader uncertainty. Short-term traders may focus on the 4-hour chart’s bullish potential, while longer-term observers remain wary of the daily wedge’s bearish implications. Institutional selling pressure and macroeconomic factors, such as ETF-related speculation, further complicate the outlook. However, the immediate focus is on price action near $117,000 resistance and the wedge’s support, as either could trigger a significant move [1].

Traders are advised to monitor key levels with caution. A breakout above the 4-hour pennant’s resistance could drive Bitcoin higher, aligning with recent exchange inflows and ETF optimism. Conversely, a breakdown below the daily wedge’s support may accelerate profit-taking, particularly if risk appetite weakens. The interplay between these patterns underscores the importance of liquidity and volume in determining Bitcoin’s next major direction.

Sources:

[1] [Bitcoin Price Analysis: Bullish 4H Pennant vs Bearish Daily Wedge](https://coinmarketcap.com/community/articles/6881fbe8f1106366bc254752/)