Bitcoin News Today: Bitcoin Rising Wedge Triggers 10-20% Correction Warning Amid $113k Breakdown Alert

Bitcoin’s recent price action has sparked heightened attention from traders and analysts, as a prominent technical pattern suggests the potential for a significant correction. A "rising wedge" formation identified on Bitcoin’s daily chart has drawn scrutiny, with crypto analyst Captain Faibik warning that a daily close below $113,000 could confirm a breakdown and trigger a decline toward $95,000–$98,000 [1]. This pattern, characterized by converging trendlines with diminishing volatility, is historically associated with bearish reversals. A 2021 study from the Journal of Risk and Financial Management noted that rising wedge patterns predict price drops with a 70% accuracy rate in volatile markets like cryptocurrency [1]. The analysis underscores the importance of volume confirmation to avoid false signals, as a 2019 Quantitative Finance paper revealed 30% of wedge breakdowns reverse within 24 hours without supporting volume [2].

The market’s current dynamics align with historical trends, where prolonged rallies often culminate in 10–20% corrections. A 2023 Coinbase report highlighted similar pullbacks, though it acknowledged the present market’s resilience due to growing institutional adoption. However, the rising wedge’s converging trendlines—formed by higher highs and higher lows—indicate waning bullish momentum, a classic precursor to reversals [1]. Captain Faibik’s cautious approach, emphasizing the need for confirmation before action, reflects the high-stakes environment. Traders are advised to monitor the $113,000 level closely, as a break could cascade into broader market moves.

Reactions on X reflect diverging views. Some traders speculate a market top, while others advocate buying into "max fear" dips. The recent filling of a CME gap—a technical event often preceding volatility—adds to the uncertainty. Despite bearish signals, the absence of confirmed volume decline—a key indicator per Investopedia—leaves room for ambiguity [1]. The crypto community’s mixed sentiment underscores the challenge of navigating a market poised between continuation and correction.

As Bitcoin nears all-time highs, the rising wedge pattern could mark a pivotal moment. Whether it leads to a sharp correction or a false signal, the next few hours will be critical for investors. Analysts emphasize the need for patience, as premature actions based on unconfirmed patterns risk exposure to false breakdowns. The interplay of technical indicators and market psychology will likely determine the trajectory of Bitcoin’s next move, making this period a test of resilience for both bulls and bears.

Sources:

[1] [Bitcoin on the Brink: Rising Wedge Signals Potential Correction](https://coinmarketcap.com/community/articles/68831e89960a504cf76a41d6/)

[2] [Bitcoin on the Brink: Whale Movements Signal High-Stakes](https://www.btcc.com/en-US/square/Coingape/685153)

[3] [cryptopredictions: последние новости](https://www.binance.com/ru-KZ/square/hashtag/cryptopredictions)

[4] [nequi.org](https://nequi.org/)