Analysts Warn Bitcoin Could Dip Below $90,000

Binance BTC/USD 15-minute chartBinance BTC/USD 15-minute chart. Source: TradingView

Analyst Captain Faibik highlighted a breakdown from a rising wedge pattern on the daily chart. Traders generally view this formation as a bearish signal that often precedes sharp declines.

Based on historical performance, a rising wedge resolves to the downside 81% of the time during bull markets, with an average drop of about 38% once confirmed.

According to Faibik, the break of wedge support signals weakening momentum and increasing selling pressure. The nearest support sits between $110,000 and $112,000. A failure to hold that zone could open the door to $105,000–$108,000.

If selling pressure intensifies into September, Bitcoin could fall into the “psychological” range of $98,000–$100,000. In a worst-case scenario, the decline might reach $88,000, said Cointelegraph analyst Yashu Gola.

Bitcoin rising wedge breakdownBitcoin rising wedge breakdown. Source TradingView

Gola added that this bearish outlook would be invalidated if Bitcoin holds above the 50-day exponential moving average (EMA). In that case, the price could rebound toward the upper boundary of the wedge near $125,000.

Swissblock analysts also noted the formation of a double-top pattern on the weekly chart.

The structure resembles the 2021 setup, when Bitcoin dropped 77%. If history repeats, the asset could test the 50-day EMA around $94,750 by September.

Double-top pattern on the weekly chartDouble-top pattern on the weekly chart. Source: Cointelegraph, TradingView

At the time of writing, Bitcoin was trading at $115,313, down 2.5% over the past 24 hours, according to CoinGecko.

On-Chain Metrics

Glassnode data shows the number of addresses holding more than 10,000 BTC has fallen to a yearly low.

Number of addresses with over 10,000 BTCNumber of addresses with over 10,000 BTC. Source: Glassnode

Wallets holding between 1,000 and 10,000 BTC have also declined, suggesting that large holders are taking profits near recent highs.

Wallets holding 1,000–10,000 BTCWallets holding 1,000–10,000 BTC. Source: Glassnode

Still, Gola stressed that today’s market differs from 2021. Back then, the Federal Reserve was tightening monetary policy. Now, CME FedWatch data shows traders expect a rate cut in September.

Rate cut expectations for SeptemberRate cut expectations for September. Source: CME FedWatch

Swissblock argued that incoming liquidity could offset technical weakness and keep Bitcoin’s broader uptrend intact.

As a reminder, FORECK.INFO previously reported on Bitcoin slipping to $115.5K as Fed jitters weighed on the market and analysts outlined the key levels to watch next.