The cryptocurrency market is experiencing a downturn, with Bitcoin and Ethereum showing significant declines. However, signs of a possible reversal are emerging on the charts.
Overall State of the Cryptocurrency Market
The cryptocurrency market is recording waves of decline. Bitcoin (BTC) is leading the downturn, dropping to around $115,000 after reaching a peak of $123,000 in mid-July. Over the last 24 hours, Bitcoin has lost nearly 3%. Ethereum (ETH) is also under pressure, shedding more than 6%.
Formation of the Falling Wedge Pattern
On the 4-hour chart, Bitcoin is forming a **falling wedge** pattern— a bullish reversal structure commonly seen before upward price movements. The recent drop in price has moved Bitcoin from the upper trendline near $118,700, where it lost support from the 100-day moving average, down to the critical lower support of the wedge at around $114,340, where the 200-day moving average currently resides.
Outlook for Bitcoin
Bitcoin is currently at a make-or-break level. If bulls can defend this support zone, a rebound towards the wedge’s upper trendline around $117,000–$118,000 is possible. A successful breakout above this could trigger a stronger rally, potentially flipping short-term market sentiment. However, if the price breaks below this wedge support and the 200 MA, the bearish momentum could accelerate further, likely dragging Bitcoin closer to the $112,000–$110,000 region.
The market is now awaiting confirmation, and this pattern could play a pivotal role in shaping Bitcoin's next move.
