Bitcoin's bullish wedge indicates a breakout above $111K with institutional support.
RSI and increasing lows indicate growing Bitcoin momentum amid worldwide tensions.
Tight price compression means Bitcoin's next move will be explosive soon.
Given that Bitcoin is exhibiting a classic bullish wedge pattern, a breakout is probably imminent as it approaches crucial resistance levels. Experts are anxiously awaiting the next significant move as Bitcoin technicals show increasing momentum despite the geopolitical tension sparked by the conflict between Israel and Iran.
Bitcoin Is Building Pressure in a Classic Bullish Wedge
Bitcoin is trading within a narrow consolidation zone as it continues to test major resistance. This compression pattern is known for leading to explosive moves, and Bitcoin’s recent price behavior confirms the pressure is building. The current setup is technically bullish, and analysts believe the next move will be significant.
Source: (X)
Bitcoin is showing signs of strength, even as it remains capped under the downtrend line that was formed from May’s highs. The price is making higher lows, which is a classic bullish signal. According to the analyst, Bitcoin’s RSI was forming higher lows while price was forming lower highs — a textbook bullish divergence. This suggests that buying momentum is increasing even though the price has not yet broken out.
The RSI has now broken above a descending trendline drawn from mid-May. This breakout is considered bullish and can act as an early signal for a price move higher. The analyst also mentioned that RSI is heading toward the 70 level, which can indicate rising buyer control. Bitcoin is hovering around $108,445 and continues to respect a compression wedge pattern, where horizontal support and downward resistance trap price action before a breakout.
There is strong support around $101,000, where Bitcoin was defended twice earlier in June. On the upside, the $109,400 zone remains filled with recent sell orders. Bitcoin will need strong volume to break through this level and confirm a bullish breakout.
Bitcoin Was Quiet, But Breakout Energy Is Building
Bitcoin was recently stuck in a narrow 10% monthly range — something that has not happened in over four years. This low-volatility move can typically predict that something big is going to occur. Bitcoin is currently valued at around $105,690, and while the price was pushed away at $106,000 a few times, the market still expects an eventual breakout.
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The analyst Rananjay Singh observed that Bitcoin’s recent price candles were small and weak, reflecting indecision. But historically, this kind of tight price compression is followed by strong directional movement. If Bitcoin can break above $106,500, it will likely retest the $110,000 area. However, if it fails again, the price could revisit $104,000 or even the $100,500 support zone.
Bitcoin’s current compression structure is unsustainable. The chart shows that volume was dropping while volatility narrowed, two signs that a bigger move will soon emerge. As this wedge pattern tightens, traders are preparing for an imminent shift in trend.
Bitcoin is currently lower on the heels of heightened tensions between Iran and Israel. This has led to a call from President Trump for all U.S. citizens to exit Tehran because Iran has not respected nuclear agreements. This aside, Bitcoin can benefit from rising institutional trading, which suggests potential bullish pressure soon to come.
Bitcoin Will Likely Benefit from Institutional Bullish Action
The sentiment for Bitcoin is bullish, underpinned by institutional demand. Recent filings revealed that MicroStrategy acquired 10,100 BTC, and Metaplanet added over 1,000 BTC. Such additions are typically a bearish indicator, especially during price consolidation levels near levels of breaking out.
Bitcoin has only exhibited a rare Golden Cross chart pattern recently, which was associated with rallies of as much as 63%. The Bull Market Support Band has now also gone into a higher position, reinforcing the long-term bull case. Bitcoin did correct from $108,000 to $105,000, however, in response to near-term volatility around geopolitical announcements. If Bitcoin can move above the critical $111,000 resistance level, it can now target heights of up to $117,000.
In summary, although Bitcoin is in a strong bullish setup, its confirmation of the bias is a breakout. Until then, the market is guarded as it faces escalating global uncertainties.
