Bitcoin is testing critical support near $102,381 within a bearish rising wedge pattern.
A breakdown below the wedge and 21MA could signal a broader market correction.
Resistance at $106,518 remains unbroken, limiting bullish momentum in the short
Bitcoin (BTC), is currently navigating a critical juncture as technical signals suggest a potential market correction. The asset is trading at $102,596, reflecting a 0.9% decline over the past 24 hours. Despite holding its position as the top-ranked digital asset, Bitcoin is showing signs of weakening momentum, with its price action caught within a precarious rising wedge pattern. Analysts are closely monitoring the possibility of a breakdown that could shape BTC’s short-term trajectory.
Market Pressure Builds as BTC Tests Support
Bitcoin's recent pullback comes as its prolonged fight near a horizontal supply zone, where numerous failed attempts at breaking higher have run into resistance. The price is now testing the lower boundary of the rising wedge, a technical pattern that typically demands bear reversals when broken on the downside. Currently, BTC remains just above the immediate support of $102,381, which has been holding off price drops in recent sessions but is increasingly appearing spent.
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Adding more technical pressure is the 21-day moving average (21MA), which slices through near the lower trendline of the wedge. This moving average has served as dynamic support for several weeks, holding deeper losses under wraps. That being said, a strong close below both the wedge and the 21MA can usher in more selling pressure, which could lead the door open to further losses.
Resistance Remains Unchallenged
On the upper side, Bitcoin is faced with a robust resistance level of $106,518, which continues to cap bull attempts. Price dynamics have been locked within a narrow 24-hour range, and the failure to overcome this ceiling has weakened bulls' momentum. Lacking a sudden catalyst, the market appears unwilling to move towards recent tops, leaving BTC exposed to bear force if technical support breaches.
Bearish Pattern May Signal Correction
The rising wedge pattern has been read traditionally as a bearish reversal or continuation pattern, depending on previous trends. In the case of Bitcoin, the pattern emerged following a strong trend upwards, making the odds higher for a prompt correction. Market participants are waiting closely for a confirmed breakdown, that is, consistent price action below both the wedge and the 21MA with above-average trading volume.
However, a bounce from current support levels is also conceivable if buying pressure returns. This would keep Bitcoin trapped in the wedge and possibly delay a bearish resolution. Traders are likely to wait for a clear directional move before assuming new positions, given that uncertainty still engulfs near-term forecasts.
Outlook Hinges on Technical Confirmation
Subsequent sessions will be crucial to determine the direction of Bitcoin next. A clean breakdown might attract further downward pressure, which can trigger a greater pullback. Or, holding near-term levels could allow BTC to consolidate or see another test of the $106,518 resistance.
Without macroeconomic shock or major news events, technical signals remain on top of price action. Market onlookers suggest waiting for a robust breakout or breakdown to affirm direction in Bitcoin.
