Quick overview

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The technical setup of Bitcoin showed BTC whales have increased their short exposure to the cryptocurrency, which could lead to a deeper correction to $74K.

The weekly chart displays the BTC/USD pair trading within a rising wedge, with the price testing support from the pattern’s lower trendline at $110,000.

A weekly candlestick close below this level will clear the way for Bitcoin to fall 34 percent from its current price, toward the wedge’s bearish target of $74,000. Additionally, this is the same time as its last peak, which was attained in March 2024. Bitcoin’s price and the relative strength index are showing increasing bullish divergence, which supports the bearish argument.

The persistent consolidation of Bitcoin within the pattern’s trendlines indicates that “Bitcoin’s bull run is nearing its end,” according to analyst Captain Faibik. Rising wedges are generally bearish reversal patterns. In a Wednesday X post, the analyst stated that “Bitcoin is still inside the rising wedge and bulls are in control for now, but not for long.”

The analyst also stated that “momentum is fading, and once the wedge breaks, bears will take over with a sharp correction ahead.“. Bitcoin may undergo a “significant shakeout” before reaching its all-time high, potentially surpassing $126,000, according to seasoned trader Peter Brandt.

“Although I believe the 80 percent decline is over, we should test the lower end of the banana and possibly return to the $50–60,000 range. In the worst-case scenario, if the price is unable to stay above the $74,000 mark, several technical and on-chain indicators suggest that the BTC/USD pair may fall to that level.”