Bitcoin Breaks Rising Wedge, $88K Target as Double-Top Looms
Bitcoin has confirmed a bearish breakout from the rising wedge that formed in April, slipping 8% from its all-time high above $124,500 after breaking below the wedge’s support trendline and the 50-day EMA around $110K. Technical analysts warn that if the $110K–$112K support fails, BTC could slide to $105K–$108K and test the key $98K–$100K zone by September, with a measured downside target of $88K based on wedge height projection. On the weekly chart, a developing double-top pattern echoes the 2021 reversal, potentially driving Bitcoin toward the 50-week EMA near $94,750. Glassnode on-chain data show whale addresses holding over 1,000 BTC at multi-month lows, signaling profit-taking and added selling pressure. However, a likely 25bps Fed rate cut in September and a growing global M2 money supply may cushion the downturn and support a longer-term uptrend.
Bearish
Technical indicators point to increasing selling pressure on Bitcoin: the breakdown from the rising wedge, the drop below the 50-day EMA, and the emerging double-top on the weekly chart all signal a potential correction toward $88K–$94.75K in the near term. On-chain data confirming whale profit-taking reinforces the bearish sentiment. Although a likely Fed rate cut and rising M2 money supply could buffer losses and support a longer-term rebound, traders should brace for downside volatility before any sustained recovery.