Bitcoin News Today: Bitcoin's Technical Abyss: A $98K Bottom Lurks in the Shadow of $125K

Bitcoin’s price continues to draw significant attention as key technical indicators signal a deepening bearish trend. Following a recent breach of a rising wedge pattern on the daily chart, BTC has slipped below critical support levels, intensifying pressure on short-term buyers and institutional holders. The wedge pattern, formed by converging higher highs and higher lows since April 2025, has historically signaled a sharp downward correction once broken. With the price currently trading near $113,507—down 2.52% in the past 24 hours—analysts are monitoring the $110,000–$112,000 support range. A failure to hold this zone could expose further downside, potentially driving the price as low as $105,000–$108,000 and, ultimately, the $98,000–$100,000 psychological level [2].

On-chain data adds to the bearish sentiment. Short-term holders (STHs), who accumulated BTC at prices above $107,000, are now at risk of heavy losses should the price break below this level. Their realized price, currently above $107,000, suggests a precarious position, especially with leveraged long positions concentrated across major exchanges. A break below $107,000 could trigger widespread liquidations, particularly in the short-term segment, where 78.5% of liquidation levels are stacked [4]. This imbalance between bearish positioning and potential liquidity grabs by larger players has created a volatile environment, where sharp price swings in either direction are possible as leverage builds [4].

The technical breakdown is further reinforced by the formation of a potential double-top pattern on the weekly chart. This pattern, marked by two failed attempts to break past the $124,000 high, is considered a strong reversal signal. Swissblock analysts have drawn parallels between the current setup and Bitcoin’s 2021 double-top formation, which preceded a 77% correction. The key downside level in the current cycle is around $94,750, coinciding with Bitcoin’s 50-day exponential moving average (EMA). Holding above this level could prevent a repeat of 2021 and allow for a potential rebound [2].

Meanwhile, macroeconomic factors may provide some counterbalance. The upcoming Jackson Hole Symposium, where Federal Reserve Chair Jerome Powell is expected to outline the central bank’s stance on interest rates, could influence BTC’s near-term trajectory. The market is currently pricing in a 25-basis-point rate cut in September, which may support risk-on sentiment and liquidity in the crypto market [1]. However, a hawkish stance from the Fed could validate the bearish technical outlook and accelerate the downward move.

Analysts also highlight the role of large whale activity in shaping the price action. Data from Glassnode shows a decline in the number of mega whale wallets (those holding more than 10,000 BTC) to their lowest point this year. Similarly, wallets with holdings between 1,000 and 10,000 BTC have also declined, indicating that major investors are offloading positions near the recent peak. This whale profit-taking aligns with the technical weakness, reinforcing the potential for an extended correction [2].

Looking ahead, the market is at a critical juncture. Short-term buyers must defend key support levels to prevent a deeper correction, while institutional buyers and macroeconomic conditions could provide a safety net for the long-term bullish case. However, unless BTC can reclaim the wedge’s upper trendline at $125,000 or maintain above the 50-day EMA, the bearish narrative remains intact [1]. With over $40 billion in 24-hour trading volume and a fragile balance of leverage and sentiment, the coming weeks will be pivotal in determining Bitcoin’s immediate direction.

Source:

[1] Bitcoin Price Wedge Pattern Points to a 46% Crash Ahead of Jackson Hole Speech (https://coingape.com/markets/bitcoin-price-wedge-pattern-points-to-a-46-crash-ahead-of-jackson-hole-speech/)

[2] Bitcoin Price Alert: How Low Can BTC Fall After Rising Wedge (https://www.analyticsinsight.net/bitcoin/bitcoin-price-alert-how-low-can-btc-fall-after-rising-wedge)

[3] Bitcoin Price Analysis: BTC Tests Crucial Support After Latest ATH (https://cryptopotato.com/bitcoin-price-analysis-btc-tests-crucial-support-after-latest-ath/)

[4] Why Experts Warn BTC Could Drop Below $107K (https://blockonomi.com/bitcoin-price-analysis-why-experts-warn-btc-could-drop-below-107k/)