Bitcoin (BTC) Price Forecast: Rising Wedge Hinting a Looming Price Correction

BTC Price Analysis

The BTC daily chart shows a completed 5-wave Elliott Wave structure, peaking at $106,554 on Dec. 16. A rising wedge pattern has formed, signaling a potential correction as momentum weakens. The RSI displays bearish divergence, suggesting declining buying strength at current highs.

Fibonacci retracement levels highlight crucial support zones, starting with $93,756 (0.236 Fib). Deeper corrections may target $86,129 (0.382 Fib), $79,965 (0.5 Fib), and $73,801 (0.618 Fib). If bearish pressure increases, $65,025 (0.786 Fib) could become a major downside level to monitor.

To sustain the broader bullish outlook, BTC must remain above $93,756 and avoid breaking critical supports. A recovery above $106,554 would confirm strength and signal a continuation toward new highs, while a failure to hold support could trigger a deeper pullback.

BTC Price Prediction

The hourly chart reveals a completed Wave 3, topping out at $106,554, with a rising wedge pattern pointing to a possible Wave 4 correction. Fibonacci retracement levels outline critical downside support areas as BTC faces slowing momentum post-rally.

The initial support lies near the ascending trendline at $93,756 (0.236 Fib). Deeper retracement levels to watch include $86,129 (0.382 Fib) and $79,965 (0.5 Fib), which align with standard Wave 4 corrections under Elliott Wave Theory. Maintaining these levels will be key for resuming bullish momentum.

For BTC to confirm Wave 5 and extend higher, it must hold the $86,000–$80,000 zone and reclaim $106,554. A breakdown below $79,965 may lead to a deeper pullback, challenging the bullish trend.

Key Levels to Watch

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