TLDR:
- Bitcoin is forming a rising wedge pattern, often linked to trend reversals.
- A close below $113K could confirm breakdown and trigger sharp downside.
- The $116K–$120K range has failed to produce bullish breakout momentum.
- Analyst warns of PO3 trap, where smart money may have exited near highs.
Bitcoin is flashing red lights again. The latest chart setup is making traders nervous, and some are already pulling back. After weeks of climbing, BTC might be running out of steam. One expert believes a sharp drop is coming, and soon.
If the current trend breaks down, Bitcoin could fall below the $100,000 mark.
Rising Wedge Pattern Signals Weak Bitcoin Momentum
According to technical analyst Captain Faibik, Bitcoin is forming a rising wedge on the daily chart. This pattern often points to exhaustion in uptrends and can lead to reversals.
Price is currently hovering around $115k, with consolidation tightening near the upper half of the wedge.
This behavior suggests buying pressure is fading. The key level to watch is $114,000. If support at that point gives way, the setup could trigger a drop toward $95,000 to $98,000.
$BTC Rising Wedge & Bearish PO3 in Play on the Daily TF Chart..
I think Smart Money trap late buyers with a liquidity sweep..
If wedge support breaks, expect a drop toward the 95-98k zone.. 📉#Crypto #Bitcoin #BTC pic.twitter.com/Pjs2V7LPVR
— Captain Faibik 🐺 (@CryptoFaibik) July 24, 2025
Another red flag is a potential Price Over Price Over Price (PO3) trap. This occurs when price pushes higher just enough to trigger FOMO buys, then reverses. Faibik believes smart money may have swept liquidity at recent highs before pulling back.
The area between $116,000 and $120,000 has acted as a tight range. Price failed to break through convincingly. If momentum breaks down from here, it could confirm this bearish trap.
$113K Close Would Confirm BTC Price Breakdown
Faibik added that a daily candle close below $113,000 would confirm the wedge breakdown.
Until then, traders are advised to remain cautious and avoid entering late long positions. Volume spikes during the breakdown could offer more confirmation of a strong move downward.
At press time, CoinGecko data shows Bitcoin trading at $115,968. That’s a 1.63% drop in 24 hours and a 3.58% dip over the past week. These losses lend weight to the bearish outlook.
The current structure has traders on edge. If support fails, momentum could shift rapidly. A correction toward $95,000 would erase weeks of gains.
Bitcoin’s next few daily closes will be critical. For now, the market is holding its breath.
