Bitcoin Rejected at $65,600: Falling Wedge Signals Downside
Bitcoin price stalled after rejecting the $65,600 horizontal resistance, threatening the continuation of the recent rally. Bulls now face a key test: shorter-term momentum is turning down, and without a sudden breakout, the “path of least resistance” appears bearish.
Technically, the article highlights a falling wedge structure. The first major support is the top of the falling wedge—an area bulls must defend. A confirmed drop back into the wedge would imply Tuesday’s upside move was likely a fakeout. Below that, support levels are cited at around $63,000, followed by the bull-market trendline.
The daily chart also notes firm support near the wedge top, supported by a horizontal level and the 50-day SMA, so a bounce is still possible. However, even if Bitcoin rebounds quickly, resistance around $66,000 may keep price range-bound, potentially extending into late August or beyond.
The longer-duration scenario suggests a prior bear-market pattern could take until Q4 to end, with October flagged as the probable turning point. Overall, traders are watching whether Bitcoin can reclaim resistance or whether a wedge breakdown triggers further downside.
Bearish
The article’s core message is that Bitcoin failed at major resistance ($65,600) and is approaching key supports defined by a falling wedge. That combination usually shifts traders’ behavior toward de-risking: repeated resistance rejections often lead to lower highs, while wedge breakdowns frequently accelerate selling.
In similar past setups, when price taps a long-guarded horizontal level and momentum rolls over, spot and perp traders often wait for confirmation (either a hold above the wedge top or a confirmed breakdown). If Bitcoin slips back into the wedge, stop-loss cascades can occur and pull liquidity to the next horizontal support (~$63,000) and then the bull-market trendline.
Short-term, the most likely volatility driver is whether Bitcoin can bounce off the wedge top supported by the 50-day SMA. If it holds, a relief bounce and range trading are plausible, with resistance near $66,000 capping upside. Long-term, the article suggests the broader bear-market cycle may not be finished until around Q4 (with October as a potential inflection), implying rallies could be sold until a clearer trend reversal appears.