Bitcoin News Today: Bitcoin Falls 4.3% as Bearish Wedge Nears Critical $113K Support Level

Bitcoin’s price action has drawn heightened scrutiny as a bearish rising wedge pattern emerges on the daily chart, signaling potential exhaustion in the current uptrend. The cryptocurrency is currently trading at $115,511 after a 4.3% weekly decline, with technical analysts highlighting the significance of a key support level at $113,000. This level has become a critical threshold, as a confirmed daily close below it could validate the wedge pattern and trigger a corrective move [1].

The rising wedge formation is characterized by converging price boundaries that slope upward, with Bitcoin repeatedly failing to break past its resistance at $119,415. This inability to push higher has compressed the price within a narrow range of $115,259 to $119,415. The upper boundary of the wedge, which coincides with the $119,415 resistance, has acted as a cap on bullish momentum. Meanwhile, the lower boundary remains under close watch, particularly as the $115,259 support level has held as a temporary floor [1].

Technical analysts emphasize that the pattern’s bearish implications depend on a breakdown below $113,000. Until this occurs, the market remains in a consolidation phase, with price movements oscillating between the defined support and resistance. However, prolonged indecision near these levels increases the likelihood of heightened volatility, as traders brace for potential directional shifts. The 4.3% weekly decline underscores growing caution among participants, who are now prioritizing risk management ahead of a potential shift in trend [1].

A breakdown confirmation hinges on a daily close below $113,000, which would signal a loss of control over the wedge structure. Such a move could drive Bitcoin toward lower price targets, with the $113,000 level acting as an initial target. The failure to maintain the wedge also risks amplifying short-term volatility, particularly as the market grapples with the psychological significance of round-number thresholds like $113,000.

The current trading environment reflects a tug-of-war between bullish and bearish forces. While the $115,259 support has provided temporary relief, the lack of sustained buying pressure above this level suggests fragility in the uptrend. Conversely, the inability to breach $119,415 resistance highlights a lack of conviction among buyers. This dynamic has created a precarious equilibrium, where a single decisive move—either higher or lower—could tip the balance and dictate the near-term trajectory [1].

Traders are now closely monitoring the $113,000 level for signs of a breakdown. Until a clear direction emerges, the market is likely to remain range-bound, with price action dictated by the interplay of technical levels. Any further deterioration in sentiment could accelerate the sell-off, while a successful defense of $115,259 might rekindle hopes of a rebound. The path forward hinges on whether Bitcoin can regain control of its short-term trend or if the bearish wedge will prevail.

Source: [1] [Bearish Wedge Puts Bitcoin on Edge: Will $113K Hold or Break?] [https://cryptonewsland.com/bearish-wedge-puts-bitcoin-on-edge-will-113k-hold-or-break/]