- Daily rising wedge indicates downside risk toward $95K support.
- Bullish 4H pennant could fuel rally if resistance breaks soon.
- Volume decline suggests momentum divergence despite bullish chart setups.
Bitcoin (BTC) is flashing conflicting technical signals as traders brace for its next major move. According to analyst Captain Faibik, Bitcoin is forming a rising wedge pattern on the daily chart, a structure often associated with bearish reversals.
The wedge’s upper resistance has been tested multiple times, and volume is steadily tapering, signaling waning bullish strength. Faibik also highlighted a bearish PO3 (Price Over Price Over Price) setup development, suggesting that smart money might trigger a liquidity sweep to trap late buyers at recent highs.
Currently, BTC is consolidating near the wedge’s resistance zone, but failure to hold the lower wedge boundary could confirm a breakdown. If support collapses, downside targets lie in the $95,000–$98,000 range.
Faibik pointed out that a previous range resistance has now turned into support and is being retested, forming a key breakdown zone. Traders are urged to proceed cautiously as technical weakness builds despite recent bullish sentiment.
4H Bullish Pennant Hints at Breakout Continuation
Contrasting the daily timeframe, the 4-hour chart presents a bullish pennant pattern. This formation, often appearing after strong upward moves, suggests the possibility of a breakout continuation if resistance is breached. Bitcoin is currently trading near $117,739, down 0.69% at the time of analysis, but the pennant structure remains valid.
The pattern is marked by converging trendlines: descending upper resistance and ascending lower support. These lines indicate tightening price action as BTC coils ahead of a potential move.
Analysts are watching closely for a confirmed breakout above the pennant’s upper boundary. Captain Faibik commented, “Let’s see how it plays out,” acknowledging the uncertainty but pointing to a possible bullish scenario.
What to Expect Next for Bitcoin Price Action
Bitcoin’s technical landscape is divided between short-term bullish consolidation and broader downside risk. While the 4H chart favors bulls in the near term, the daily wedge structure warns of a possible correction ahead. Traders are watching the $117K resistance and the wedge’s support closely, as either could trigger BTC’s next major leg.
Momentum and volume will be crucial in confirming direction. A breakout above the pennant could reignite bullish momentum, while a wedge breakdown may lead to deeper pullbacks. Both scenarios remain in play, making this a critical period for BTC price action.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
