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Bitcoin has broken down from a rising wedge, with key support zones between $110K and $100K.
On-chain data shows whales reducing holdings, fueling profit-taking near recent highs.
A Fed rate cut in September could provide liquidity support, helping BTC maintain long-term upside.
Bitcoin (BTC) is facing renewed selling pressure as multiple bearish signals converge, raising concerns that the world’s largest cryptocurrency could dip below $100,000 in the coming weeks. After reaching an all-time high of over $124,500 just four days ago, BTC has already fallen nearly 9% and is currently trading around $113,507.
Detailed BTC Analysis can reveal hidden trends that most casual traders often miss. Analysts warn that a combination of technical breakdowns, bearish chart patterns, and large whale activity could drive prices lower before buyers return.
Technical analysts are pointing to Bitcoin’s confirmed breakdown from a rising wedge pattern on the daily chart as the key trigger for the latest decline. Rising wedges often form during strong rallies but tend to resolve with sharp downward moves once the pattern breaks.
According to market analyst Captain Faibik, Bitcoin’s wedge has been developing since April with a series of higher highs and higher lows converging toward the apex. The decisive move below the wedge’s support line now points to weakening momentum and increasing selling pressure.
Immediate support levels are highlighted around $110,000-$112,000, but losing this range could accelerate the decline toward $105,000-$108,000. A further breakdown could expose the $98,000-$100,000 psychological zone.
Many traders keep a close eye on Bitcoin Price Today to decide their entry and exit strategies. If selling pressure persists, the full wedge projection implies a downside target of $88,000, which would represent a nearly 30% pullback from the recent record high.
Bitcoin’s weekly chart suggests another bearish signal: a potential double-top formation around the $124,000 region. This pattern, marked by two failed attempts to break past the same high is considered a strong reversal indicator.
The formation of a Rising Wedge pattern could indicate a possible trend reversal. Analysts at Swissblock compared the current setup to Bitcoin’s 2021 double top, which preceded a staggering 77% correction that dragged BTC from $69,000 down to $16,000.
For the current cycle, the key downside level is around $94,750, coinciding with Bitcoin’s 50-day exponential moving average (EMA). Holding above this zone could prevent a repeat of 2021 and offer scope for a rebound.
Combining BTC Analysis with insights on BTC Whale Activity can give traders a competitive edge. BTC Whale Activity often sparks sudden volatility, influencing short-term market moves. However, failure to maintain this support risks validating the double-top scenario, with deeper declines likely.
On-chain data is adding another layer of caution. Metrics from Glassnode reveal that the number of mega whale wallets (holding more than 10,000 BTC) has fallen to its lowest point this year.
Meanwhile, wallets with holdings between 1,000 and 10,000 BTC have also declined, suggesting that large investors are offloading positions near the recent peak. This wave of whale profit-taking aligns with technical weakness, reinforcing the possibility of an extended correction.
Historically, aggressive whale distribution has been a precursor to multi-week pullbacks, as reduced institutional and high-net-worth demand often leaves prices more vulnerable to retail-driven volatility.
Despite the bearish technical picture, macroeconomic conditions could provide Bitcoin with a safety net. Unlike in 2021, when the Federal Reserve was tightening monetary policy, the current environment suggests a potential rate cut.
According to the CME FedWatch Tool, markets are pricing in a 25-basis-point rate cut in September. Lower rates generally boost liquidity and risk appetite, which could help stabilize Bitcoin’s price and reignite demand.
Additionally, global money supply growth (M2) has remained elevated, providing another source of support for risk assets. Some analysts argue that sustained liquidity expansion could push Bitcoin toward $132,000-$170,000 in the coming months, even if a short-term correction plays out first.
Also Read: How Bitcoin’s Challenges Affect the Crypto World?
Immediate support: $110,000-$112,000
Secondary support: $105,000-$108,000
Critical zone: $98,000-$100,000
Full wedge target: $88,000
Upside invalidation: Holding above the 50-day EMA ($94,750) and reclaiming the wedge’s upper trendline at $125,000
In the near term, Bitcoin looks vulnerable to deeper corrections as bearish technical patterns and whale activity weigh on sentiment. A dip toward $94,000-$100,000 remains possible if sellers maintain control, with an extreme downside projection as low as $88,000.
However, the broader macro backdrop remains supportive. If the Federal Reserve signals a dovish pivot at Jackson Hole later this month and liquidity continues expanding globally, Bitcoin’s long-term uptrend could remain intact.
while short-term volatility and a possible correction are on the table, Bitcoin still has the potential to reclaim higher levels later in 2025, with analysts maintaining six-figure price targets over the longer horizon.
1. Why is Bitcoin falling after hitting new highs?
BTC broke below a rising wedge pattern, a bearish technical signal often followed by corrections.
2. What is the next major support for Bitcoin?
Key support sits at $110K-$112K, with deeper zones at $105K-$100K and an extreme target of $88K.
3. How does whale activity impact BTC price?
Large holders reducing their positions increases selling pressure, making Bitcoin more volatile.
4. Could Bitcoin still reach $132K-$170K in 2025?
Yes, analysts suggest a Fed rate cut and global liquidity growth could fuel the next leg higher.
5. Is this correction similar to 2021’s crash?
A double-top pattern mirrors 2021, but unlike then, monetary easing today may limit the downside.
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