Bitcoin News Today: Bitcoin Faces Renewed Bearish Pressure as Analyst Warns of $100k Collapse Amid Rising Wedge Pattern

Bitcoin faces renewed bearish pressure as prominent analyst Captain Faibik warns of a potential collapse below $100,000. The cryptocurrency has formed a "rising wedge" pattern on daily charts, a technical indicator often signaling weakening momentum and potential trend reversals. According to Faibik, a key support level at $113,000 has become critical. A daily close below this threshold could trigger a sharp decline toward $95,000–$98,000, validating the breakdown scenario [1]. The pattern’s consolidation near the wedge’s upper boundary suggests heightened vulnerability, with volume spikes likely to amplify sell-offs if the breakdown materializes [1].

Recent market activity has exacerbated concerns. Galaxy Digital’s reported sale of 10,000 BTC (worth ~$1.18 billion) and a $370 million USDT withdrawal from exchanges pushed Bitcoin down 3% within an hour, triggering $144 million in liquidations, predominantly long positions [1]. Such large-scale sell-offs highlight the fragility of the current price structure, particularly during periods of thin trading volume. Analysts caution that whale activity can rapidly destabilize markets, especially when combined with technical exhaustion.

Faibik’s analysis also highlights a "bearish PO3" pattern on the daily chart, signaling a potential trap for late buyers. This scenario involves institutional players temporarily inflating prices to entice retail traders before reversing the trend downward, sweeping away profits from weaker hands [1]. Despite a 23% increase in daily trading volume to $87.46 billion, the surge primarily reflects profit-taking rather than sustained bullish momentum. Traders are advised to wait for a confirmed close below $113,000 before acting, as premature moves could expose them to the PO3 trap [1].

The broader market context remains mixed. While Bitcoin has retreated from its key support level of $118,000 to trade near $115,710 as of July 24, some analysts project higher highs. Mike Novogratz, for instance, recently forecasted a potential target of $150,000 by year-end [2]. However, Captain Faibik’s bearish outlook underscores the asset’s susceptibility to sharp reversals amid structural weaknesses. The failure to sustain gains above $116,000–$120,000 further complicates the bullish narrative, with declining volume and liquidity outflows pointing to heightened volatility [1].

Institutional exposure and macroeconomic dynamics could amplify the impact of a breakdown. A sustained move below $113,000 would intensify downward pressure, testing long-term support zones and reshaping market sentiment. Traders are advised to avoid long positions in the near term, as volume surges during a breakdown could accelerate the sell-off. The interplay between technical patterns and institutional behavior underscores Bitcoin’s precarious position, with key levels serving as both opportunities and risks for market participants [1].

As the market awaits confirmation of the breakdown, caution remains paramount. The next few daily closes will be pivotal in determining whether the predicted correction materializes. Investors are urged to monitor $113,000 closely, as further declines could test the cryptocurrency’s resilience and redefine its trajectory in the coming months.

Source:

[1] [Bitcoin (BTC) Price Could Crash Below $100k, Expert Warns] [https://blockonomi.com/bitcoin-btc-price-could-crash-below-100k-expert-warns-heres-why/]

[2] [Bitcoin Could Hit $150K This Year, Says Mike Novogratz—Ethereum Outperform] [https://decrypt.co/331711/bitcoin-could-hit-150k-this-year-mike-novogratz-ethereum-outperform]