Bitcoin Risk-Off Signal: Alarming 97-Day Streak & Tightening Falling Wedge Warn of Potential Volatility

They can also be angled — for example, where there is a downtrend or uptrend and the price waves within the wedge are getting smaller. Technical Analysis suggests a potential upside to Ethereum as key indicators continue to link to previous bullish cycles. Similar to Bitcoin’s 2021 incline, Ethereum’s latest movements appear to be an indication that leads to the breakout, especially given the overall market sentiment. Past data show that this type of configuration frequently leads to strong bullish breaks, in around 64 % of cases. Other indicators such as MacD are currently positive, reflecting a favorable momentum.

Once the pattern has been identified, traders should look for a breakout above the upper trend line. This breakout signals that the trend has reversed, and buyers are in control of the market. Traders can then enter a long position and set a stop loss below the lower trend line. A breakout above $118,102 for the Bitcoin price could reignite bullish momentum, but it would require robust volume to validate the shift. Conversely, a breakdown below $115,086 might accelerate bearish pressure, potentially triggering broader sell-offs across the crypto ecosystem.

Bitcoin Forming Massive Falling Wedge Chart Pattern, A Bullish Signal For An Uptrend?

TradingView provides a useful tool for identifying and trading the falling wedge pattern. The platform allows traders to draw trend lines and set alerts for when the price breaks above the upper trend line. This can help traders to enter the market at the right time and maximize their profits. The immediate support level stands near $104,636, slightly below the current market price. A failure to maintain this support could reopen downside risk toward the $102,681 level, the next major area of demand. On the upside, key resistance levels are observed at $105,910 and $108,279, with a longer-term target near $109,453 if bullish momentum persists.

The RSI last bounced from the 40 zone, which had served as a floor in previous market cycles. On past occasions, rebounds from similar RSI levels have aligned with larger upward moves on the price chart. The Relative Strength Index (RSI) for XRP/BTC on the weekly chart shows weakening momentum after a strong overbought surge in late 2024. That rally has since faded, with RSI dropping below the neutral 50 level in early 2025.

An educational insert explains the inverted hammer pattern, noting its bullish reversal potential. The hammer shows up after strong selling, suggesting exhaustion and a possible change in sentiment. EGRAG’s use of this signal points to growing confidence in a long-term upward shift. Overall, the crypto market sentiment remains cautiously optimistic despite many regulatory changes and ETF speculation. Historically speaking, the market’s disbelief is part of the rally process to gain a foothold in the face of adversity.

With the pattern’s apex at $113,507 and a width of $26,500, the target is calculated by extending this range upward from the breakout level. If Bitcoin breaks above $119,484 on strong volume, the measured move suggests a potential rally to $146,000, aligning with historical wedge patterns in bull cycles. Bitcoin ($ BTC ) is showing signs of breaking out of a falling wedge pattern, a bullish formation that often precedes upward price moves. Traders and analysts are watching closely as the price tests the upper resistance of the wedge—a key moment that could trigger bullish momentum if confirmed. Trading the falling wedge pattern requires a careful analysis of the market conditions and a well-thought-out strategy. According to altFINS, the first step is to identify the pattern and confirm that it is a falling wedge.

Please refer to our Risk Disclosure Statement and Terms & Conditions so as to have a better understanding over the risks involved before you start trading. Market expert and creator Stockmoney Lizards addressing falling wedge bitcoin the discussion and confusion in the community highlighted that Bitcoin is only halfway to its top. His perspective comes after the flagship asset’s recent upsurge, reclaiming the $100,000 level.

• However, current indicators—alongside the wedge breakout—are creating a cautiously optimistic tone among technical analysts.
• He pointed out that this is the first time Bitcoin has retested the price successfully above the “nope zone” on a four-day chart.
• As with most patterns, it is important to wait for a breakout and combine other aspects of technical analysis to confirm signals.

Bitcoin Price Bounces Back Above $77k: Will BTC Reclaim $80k?

• Pennants usually only last a few days, and they almost always continue the preceding trend.
• Volatility remains high, and a failed breakout could result in a price correction.
• Always consider on-chain metrics like active addresses and transaction volumes for additional confirmation, ensuring trades are based on verified data rather than speculation.
• A falling wedge is a classic bullish reversal pattern that suggests the end of the current downtrend and forming of a new uptrend.
• This setup offers trading opportunities for those positioning long, but risk management is crucial, with stop-losses placed below the wedge’s support to mitigate false breakouts.

Historically, falling wedge breakouts are followed by significant price increases, especially when backed by strong trading volume. Bitcoin Cash is trading at $494 at the time of publication, after entering gains in excess of 7% as price crossed the $500 for the first time since January 2025. From a technical standpoint BCH price appears poised for more gains, technical indicators show a breakout from a multi-phase falling wedge pattern. The rising wedge pattern is characterized by a chart pattern which forms when the market makes higher highs and higher lows with a contracting range. When this pattern is found in an uptrend, it is considered a reversal pattern, as the contraction of the range indicates that the uptrend is losing strength. A wedge pattern is considered to be a pattern which is forming at the top or bottom of the trend.

The upper trend line acts as resistance, while the lower trend line acts as support. As the price moves lower, it continues to hit lower highs and lower lows, creating a wedge shape. This pattern is often seen as a bullish reversal signal because it indicates that selling pressure is decreasing, and buyers are starting to take control of the market. The metric now stands at 97 consecutive days, trailing only the 107-day period recorded in November 2024. This indicator, which blends on-chain data with price structure models, highlights early-stage capital outflows from risk assets, often preceding major market drawdowns.

The price of Bitcoin is now nearing a resistance zone at $106,500 which matches old supply zones. The potential breakout is occurring after a 15% price correction in the last month, bringing Bitcoin’s price around $111,900 as of September 2, 2025. Some analysts predict a rally towards a target range of $120,000 to $127,000, while others anticipate a false breakout or another wave of selling.