- Bitcoin forms a Falling Wedge on the 4H chart, signaling a possible breakout next week.
- Key resistance stands near $105K, with a confirmed breakout potentially driving BTC toward $120K.
- On-chain data shows $7.57B TVL and strong network activity supporting Bitcoin’s bullish technical setup.
Bitcoin is forming a Falling Wedge pattern on the 4-hour timeframe, suggesting a potential breakout could occur next week. BTC may continue trading within the wedge for a few more days before rallying sharply. A Successful breakout may drive prices into the target zone of $120,000.
Bitcoin Trades Within Falling Wedge Pattern
According to analysis prepared by Captain Faibik, Bitcoin is developing a Falling Wedge pattern on the 4-hour chart. The formation is characterized by two descending, converging trendlines containing price action between lower highs and lower lows. This structure typically precedes a bullish breakout once upper resistance is breached.
The chart shows Bitcoin currently moving within a confined range, with resistance near the upper boundary and support along the lower line. Price compression within the wedge indicates consolidation and trading volume is moderate to the continued neutral sentiment. Faibik noted that Bitcoin is likely to remain in this pattern for the next few days before a breakout attempt.
Technical projections place a potential breakout above the upper trendline, signaling a shift in short-term momentum. If proven, Bitcoin could rally towards the $120,000 zone measured move of the wedge. Current data has BTC trading at $102,409 for a total market capitalization of $2.041 trillion.
Market Levels and On-Chain Activity Remain Strong
According to an observation by analyst Ted Pillows, Bitcoin is approaching a key resistance range between $104,500 and $105,000. A reclaim of this area might result in a rally to above $107,000 and rejection will result in a pullback to reach the $100,000 level. Price data shows short-term consolidation between $101,500 and $108,000.
DeFiLlama data indicates Bitcoin’s total value locked (TVL) in decentralized finance at $7.575 billion, down 0.16% in 24 hours. Although there is a slight decrease, on-chain indicators indicate that the network continues to grow since the middle of 2023. Active addresses hit 622,449 in 24 hours while daily inflows reached $2.13 million, indicating that the user engagement continues.
Bitcoin’s market structure remains constructive as consolidation continues inside the Falling Wedge pattern. With higher DeFi participation, balanced chain activity, and strong liquidity, analysts suggest the cryptocurrency is setting up for a potential breakout that could target the $120,000 mark once confirmation occurs.
