Bitcoin (BTC) Uptrend Continues While Rising Wedge Pattern Develops

Key Takeaways

• Bitcoin peaked at $106,554, forming a rising wedge pattern.
• Bearish RSI divergence suggests momentum is starting to weaken.
• Key support at $93,756 must hold to sustain the uptrend.

Bitcoin has been on a strong upward trajectory, recently peaking at $106,554 after completing a 5-wave Elliott Wave structure.

However, a rising wedge pattern has emerged, signaling potential weakness as momentum begins to fade.

With bearish divergence and key resistance level, the price faces a critical decision: sustain the uptrend or enter a corrective phase.

BTC Price Analysis 

The BTC/USD daily chart shows a completed 5-wave Elliott Wave structure, peaking at $106,554 on Dec. 16. A rising wedge formation suggests a potential correction as momentum weakens.

The Relative Strength Index (RSI) shows bearish divergence, indicating a slowdown in buying strength near current highs.

Fibonacci retracement levels highlight critical support zones, with $93,756 (0.236) as the first key level.

A deeper correction could target $86,129 (0.382 Fib), followed by $79,965 (0.5 Fib) and $73,801 (0.618 Fib). If bearish pressure persists, the $65,025 (0.786 Fib) level becomes a significant downside target.

To maintain the broader bullish trend, Bitcoin must stay above key supports and avoid breaking below the $93,756 zone.

Moving above current highs would signal strength and continuation toward further upside targets, while failure to hold support may accelerate a corrective pullback. The breakout direction from the rising wedge will provide the first indication of the likely outlook.

Key Observations

• BTC peaked at $106,554, completing a 5-wave Elliott Wave structure.
• A rising wedge signals a potential pullback toward lower Fibonacci levels.
• RSI bearish divergence indicates weakening momentum and correction risk.

BTC Price Prediction

The hourly BTC chart highlights a completed Wave 3 of a higher degree count, peaking at $106,554. A rising wedge pattern has emerged, signaling a potential Wave 4 correction.

Fibonacci retracement levels provide key downside support areas to watch as BTC faces a slowdown after its recent rally.

The first major support lies at the ascending trendline, marking the initial level for a corrective move. Deeper retracement targets include $86,129 (0.382 Fib) and $79,965 (0.5 Fib), aligning with a standard Wave 4 pullback in Elliott Wave Theory.

Maintaining these levels is critical for the continuation of the broader bullish trend. 

For BTC to confirm a resumption of Wave 5 toward higher highs, it must hold above the $86,000–$80,000 support zone and reclaim $106,000.

A breakdown below the 0.5 Fib ($79,965) could signal a deeper retracement, challenging the bullish momentum.

Key Levels to Watch

• Immediate resistance: $106,554 (current high).
• First support: $93,756 (0.236 Fibonacci retracement).
• Deeper supports: $86,129 (0.382 Fib) and $79,965 (0.5 Fib).
• Critical support: $73,801 (0.618 Fib retracement).
• Bullish continuation: Hold above $86,000 and reclaim $106,000 for Wave 5 extension.