- Bitcoin consolidates inside a falling wedge with resistance at $107K, as trader James Wynn anticipates a breakout before major downside.
- Price compression between $96K and $114K signals weakening momentum, with subdued volume hinting at a looming directional move soon.
- Key support at $100K remains firm, but unless BTC breaks above the upper wedge, a sharp correction could follow Wynn’s projected surge.
Bitcoin trades inside a falling wedge pattern, showing signs of a potential breakout before a sharp downturn. Popular trader James Wynn anticipates a rally toward $107,500, followed by a correction. At present, Bitcoin trades near $103,452, reflecting ongoing consolidation within narrowing trendlines. Despite short-term volatility, the asset is above the psychological $100,000 level, signaling resilience amid cautious sentiment.
Source: James Wynn
Besides, the hourly and four-hour charts highlight Bitcoin’s movement between $96,000 and $114,000 in recent sessions. Converging trendlines define the wedge, with price compression suggesting indecision. Each lower high pairs with relatively higher lows, tightening the range over time. Moreover, key resistance zones at $107,000 and $110,000 create clear hurdles. These levels align with past swing highs and may block upward momentum unless strong volume supports the move.
Consequently, Wynn suggests the wedge could first deliver minor green candles before triggering a deeper selloff. He has exited his short position temporarily and entered a long, aiming to flip back short once price tests upper resistance. The formation’s apex nears, indicating an imminent directional move. Volume remains notably subdued, further confirming the likelihood of a breakout event.
Key Levels and Technical Insights
Horizontal support sits at $102,000 and $100,000. These levels have historically absorbed selling pressure during sharp dips. Bitcoin previously peaked above $113,000 before descending into the current pattern. As a result, traders now monitor price behavior near $107,000 for confirmation of the next move. Wynn identifies $111,500 as a possible target if the breakout materializes.
Source: James Wynn
Additionally, the falling wedge is typically a bullish setup. However, for confirmation, Bitcoin must decisively break above the upper resistance trendline. Until then, the market remains directionless and highly sensitive to volume shifts. Momentum oscillators also reflect negative sentiment, indicating caution among bulls.
Market Awaits Resolution
Furthermore, Bitcoin’s current price outlook reveals a standoff between buyers and sellers. The lack of decisive volume shows hesitation. Market participants watch closely as price coils tighter toward the wedge apex. If bulls regain control above $107,000, the rally may continue. However, failure could spark the “Armageddon” scenario Wynn anticipates.
