Bitcoin News Today: Bitcoin Nears Critical $113K Test as Rising Wedge Signals 70% Correction Risk

Generated by AI AgentCoin World
Saturday, Jul 26, 2025 3:17 am ET1min read
BTC
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Aime RobotAime Summary

- Bitcoin tests critical $113,000 wedge support; breakdown risks 70% correction to $95,000–$98,000.

- Price fell 2.09% weekly amid strong $83.4B volume as bullish momentum stalls near $120,000 resistance.

- RSI near 80 signals overbought conditions, but extended rallies and bear flags highlight volatility risks.

- Market remains divided between institutional optimism and wedge-pattern concerns across multiple timeframes.

Bitcoin’s price action has reached a pivotal technical juncture as the cryptocurrency tests the integrity of a rising wedge pattern, a formation historically linked to bearish reversals. The pattern, defined by converging upward-sloping trendlines, has narrowed to a critical point where a close below $113,000 on the daily chart could confirm a breakdown, signaling a potential short-term correction [1]. Analysts highlight that the recent rejection at $120,000, coupled with weakening bullish momentum, has amplified concerns about the pattern’s validity. A confirmed breakdown may trigger a retracement toward the $95,000–$97,000 zone, aligning with prior consolidation support levels [2].

Current price behavior underscores the market’s fragility.

Bitcoin
has retreated 1.66% over the past 24 hours and 2.09% in the last week, trading near $116,694 as traders monitor the $113,000 threshold [3]. Volume remains robust at $83.4 billion, reflecting heightened participation as investors await a definitive technical signal. The narrowing wedge, visualized in analyses from @CryptoFaibik, illustrates how recent bullish momentum has stalled near $120,000, with bearish candle closures indicating waning buyer interest [4].

Technical indicators further complicate the outlook. The Relative Strength Index (RSI) near 80 suggests overbought conditions, though analyst PlanB notes these levels could persist for months, heightening risks of a short squeeze or abrupt reversal [5]. Meanwhile, bear flag patterns and long upper wicks on daily and weekly charts reinforce the potential for volatility. A breakdown of the $113,000 level would invalidate recent gains and validate the wedge’s bearish implications, according to forecasts from XT Community News [6].

Market sentiment remains divided. While some observers cite institutional optimism about Bitcoin’s broader trend, others warn that the wedge’s development across multiple timeframes signals elevated risks. A sustained close above $118,000 could extend the uptrend, but failure to defend $108,000 may accelerate a 9% decline, according to recent analyses [1]. The next few trading sessions are critical: a decisive move below $113,000 could initiate a 70% correction toward $95,000–$98,000 [7].

Sources:

[1] [Bitcoin Surges 13% but Faces Critical $108K Test as ...] (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-13-faces-critical-108k-test-rising-wedge-institutional-uncertainty-loom-2507/)

[2] [Bitcoin's Rising Wedge Signals 70% Correction Risk as ...] (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-rising-wedge-signals-70-correction-risk-113-000-breakdown-looms-2507/)

[3] [XT Community News] (https://www.xt.com/en/blog/community-news/2025-07-25T19:18:26.000Z)

[4] [Captain Faibick via X] (https://coinmarketcap.com/community/articles/68847f42acba474bc45021c0/)

[5] [Bitcoin Remains Overbought, PlanB Warns of Extended Rally] (https://www.coinspeaker.com/bitcoin-overbought-planb-prediction/)

[6] [Stocks, Crypto, and Commodities Face Pivotal Resistance] (https://medium.com/@jadid/stocks-crypto-and-commodities-face-pivotal-resistance-july-24-2025-acca87288100)

[7] [Bitcoin Near Key Breakdown Point as Rising Wedge Pattern Faces Crucial Test] (https://coinmarketcap.com/community/articles/68847f42acba474bc45021c0/)