Bitcoin News Today: Bitcoin Nears Critical Rising Wedge Test as 9% Drop Looms on Support Breakdown

Bitcoin is approaching a critical technical inflection point as the rising wedge pattern on its daily chart faces a pivotal test. Analysts and traders are closely monitoring whether the cryptocurrency can maintain key support levels to avoid a potential 9% correction. The pattern, defined by converging upward-trending lines that have failed to break through resistance, has historically signaled bearish reversals upon breakdowns. Recent price action indicates the asset is nearing a decisive moment, with implications for both short-term volatility and long-term sentiment.

The rising wedge has gained attention after Bitcoin surged 13% to $118,090 earlier in July but quickly faced pressure at critical support levels [1]. A breakdown below $113,000—identified as a key threshold—could trigger a pullback to between $95,000 and $98,000, according to analysts at AInvest and XT.com [2]. This scenario aligns with historical corrections linked to similar patterns, where failed breakouts often result in extended declines. Technical indicators such as the Relative Strength Index (RSI) recently approached 80, signaling overbought conditions [3].

Market participants are divided on the likelihood of a breakdown. While some warn of a high probability of a 9% drop if Bitcoin fails to stabilize above $108,000, others argue the broader trend remains bullish. JPMorgan Chase noted an ascending broadening wedge across multiple timeframes, suggesting “strong volatility” but emphasizing that the overall upward trajectory is intact [4]. Bearish signals are emerging in daily and weekly charts, including long upper wicks and a bear flag pattern, which could reinforce downward momentum [5].

Current price action reflects growing uncertainty. Bitcoin trades at $116,694, having fallen 1.66% in the past day and 2.09% over the last seven days [6]. Volume remains high at $83.4 billion, indicating active interest as traders await a technical breakdown that could shift short-term sentiment. 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 toward the $95K to $97K area [7].

PlanB, a prominent crypto analyst, cautions that Bitcoin may remain overbought for months, increasing the risk of prolonged volatility [3]. This perspective contrasts with bullish forecasts from JPMorgan, underscoring the market’s fragmented outlook. The outcome of the wedge’s test will likely influence not only Bitcoin but also correlated assets like Ethereum, which is forming its own descending broadening wedge [8].

Traders are advised to monitor volume shifts and key resistance levels in the coming days. A breakdown below $113,000 could accelerate a broader market selloff, while a successful rebound might rekindle bullish momentum. The immediate focus remains on whether Bitcoin can overcome this technical hurdle or face a more extended correction.

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

[4] [JPMorgan Chase: Financial and Technical Strength Signal ...] (https://www.fxempire.com/forecasts/article/jpmorgan-chase-financial-and-technical-strength-signal-more-upside-1536477)

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

[6] [Bitcoin declines slightly as traders monitor rising wedge setup] (https://coinmarketcap.com/community/articles/68847f42acba474bc45021c0/)

[7] [Bitcoin's Rising Wedge Formation Nears Critical Breakdown Confirmation] (https://coinmarketcap.com/community/articles/68847f42acba474bc45021c0/)

[8] [This Ethereum Descending Broadening Wedge Pattern ...] (https://www.mitrade.com/insights/news/live-news/article-3-984987-20250725)