Bitcoin is nearing a technical inflection point as it tests the lower boundary of a rising wedge pattern. Traders are closely watching the $113K level, where a daily close could signal a deeper corrective move.
Rising Wedge Formation Nears Critical Breakdown Confirmation
Bitcoin has been forming a rising wedge pattern on the daily chart, often associated with bearish reversals in trending markets. The current structure, visible in the chart shared by @CryptoFaibik, outlines converging trendlines from recent bullish movement.
Support at $113K Key to Short-Term Trend Direction
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. A projected pullback toward the $95K to $97K area is marked in green on the chart.
Bitcoin Slightly Declines as Traders Monitor Rising Wedge Setup
Bitcoin trades at $116,694 after falling 1.66% in the past day and losing 2.09% over the last seven days. These movements indicate that market participants feel more uncertain as the price remains near a significant support level.
The situation with Bitcoin requires attention as traders await confirmations of a potential breakdown. Current support and resistance levels play a crucial role in determining short-term market trends.
