Bitcoin is forming a falling wedge pattern on the 4-hour chart, indicating a likely bullish breakout next week that could push prices toward $120,000. This technical setup features converging trendlines with lower highs and lows, supported by strong on-chain activity and $7.57 billion in DeFi TVL.
Bitcoin’s falling wedge on the 4H chart signals potential consolidation before a breakout.
Key resistance levels hover around $105,000, with a successful breach eyeing $120,000 targets.
On-chain metrics reveal $7.57 billion TVL in DeFi and 622,449 active addresses, bolstering the bullish outlook.
Bitcoin falling wedge pattern emerges on 4H chart, hinting at next-week breakout to $120K. Explore technical analysis, on-chain data, and market levels driving BTC’s potential rally. Stay informed on crypto trends today!
What is the Bitcoin Falling Wedge Pattern Signaling?
Bitcoin falling wedge on the 4-hour chart represents a bullish continuation pattern where price action is trapped between two converging downward-sloping trendlines, forming lower highs and lower lows. This setup, as observed by technical analyst Captain Faibik, suggests Bitcoin may consolidate for a few more days before attempting a breakout above the upper resistance next week. A confirmed breach could propel prices toward the measured target of $120,000, reflecting building upward momentum amid moderate trading volume.
$BTC is forming a Falling Wedge pattern on the 4H timeframe Chart..!!
According to the structure, Bitcoin is likely to remain inside the wedge for the next few days & Potential Breakout can be expected next week.
If Bitcoin manages to break out successfully, we could see a… pic.twitter.com/jpnd0WSNPr— Captain Faibik 🐺 (@CryptoFaibik) November 12, 2025
Currently, Bitcoin trades at approximately $102,409, with a market capitalization exceeding $2 trillion. The pattern’s compression indicates reduced volatility, often a precursor to explosive moves. Analysts emphasize that while the formation is promising, confirmation through volume surge and close above resistance is essential to validate the bullish thesis.
How Are On-Chain Metrics Supporting Bitcoin’s Technical Setup?
Bitcoin’s on-chain data underscores the resilience of its network, with total value locked in DeFi reaching $7.575 billion, despite a minor 0.16% dip over the past 24 hours. Active addresses surged to 622,449, and daily inflows totaled $2.13 million, signaling sustained user engagement since mid-2023. According to DeFiLlama metrics, these figures highlight growing adoption, even as price consolidates within the falling wedge.
Expert analyst Ted Pillows points out that Bitcoin is nearing critical resistance between $104,500 and $105,000. A decisive move above this zone could trigger a rally beyond $107,000, while failure might lead to support testing at $100,000. Short-term price action oscillates between $101,500 and $108,000, maintaining a constructive market structure. This combination of technical patterns and robust on-chain activity positions Bitcoin favorably for the anticipated breakout.
Captain Faibik’s analysis, shared via social media, reinforces that the falling wedge’s structure favors buyers once the upper trendline breaks. “Bitcoin is likely to remain inside the wedge for the next few days,” Faibik stated, adding that a successful breakout could extend gains significantly. These insights, drawn from real-time chart observations, align with broader market sentiment, where institutional interest and network growth provide a solid foundation for potential upside.
The falling wedge pattern, a classic reversal indicator in technical analysis, differs from bearish wedges by its converging lines that trap selling pressure. Historical precedents, such as similar formations in 2024, have preceded rallies of 20-30% in Bitcoin’s price. With current TVL levels and address activity at multi-year highs, the ecosystem demonstrates maturity, reducing downside risks during consolidation phases.
Trading volume remains moderate, reflecting neutral investor sentiment, but any spike on breakout confirmation would affirm the pattern’s validity. Bitcoin’s dominance in the crypto market, holding over 50% share, further amplifies the implications of this setup. As prices hover near key levels, market participants watch for catalysts like macroeconomic data or regulatory updates that could accelerate the move.
Frequently Asked Questions
What does a falling wedge pattern mean for Bitcoin’s price in the short term?
The falling wedge pattern on Bitcoin’s 4-hour chart typically signals a bullish reversal after a downtrend, where price compression leads to a breakout upward. Analysts like Captain Faibik predict consolidation for a few days followed by a potential rally to $120,000 if resistance at $105,000 is cleared, based on measured projections and historical patterns.
Is Bitcoin’s on-chain activity indicating a strong network for the falling wedge breakout?
Yes, Bitcoin’s network shows strength with $7.575 billion in DeFi TVL, 622,449 active addresses, and $2.13 million in daily inflows. These metrics, tracked by platforms like DeFiLlama since mid-2023, reflect growing adoption and liquidity, supporting the technical falling wedge setup for a potential price surge.
Key Takeaways
- Falling Wedge Formation: Bitcoin’s 4H chart displays a bullish falling wedge, with a breakout expected next week targeting $120,000 upon clearing $105,000 resistance.
- On-Chain Strength: TVL at $7.57 billion and high active addresses indicate robust network health, mitigating risks during consolidation.
- Market Monitoring: Watch for volume increases and closes above key levels to confirm the pattern; consider pullbacks to $100,000 as buying opportunities.
Conclusion
Bitcoin’s falling wedge pattern on the 4-hour chart, coupled with resilient on-chain metrics like $7.57 billion TVL and surging active addresses, points to an imminent bullish breakout potentially reaching $120,000. As highlighted by analysts Captain Faibik and Ted Pillows, this setup reflects constructive market dynamics amid consolidation. Investors should monitor resistance levels closely, positioning for upside as Bitcoin’s ecosystem continues to mature in 2025.