TLDR:

Bitcoin has formed a rising wedge near $125K, often seen as a bearish reversal pattern after rallies.
The daily RSI is showing bearish divergence while price hits fresh highs, signaling fading bullish momentum.
A 9th TD Sell candle has appeared on the daily chart, hinting at possible short-term trend exhaustion.
BTC recently swept liquidity above $123K, a move that often traps late long positions before corrections.

Bitcoin’s surge toward $125,000 has slowed as traders eye mounting bearish technical signals. The rally has been impressive, but several chart patterns now hint that momentum could be fading. 

Traders are watching key levels where buyers have previously struggled to push higher. Analysts are flagging this area as a possible turning point for the market. With volume still strong, the next few sessions could decide whether Bitcoin continues its climb or begins a retracement.

Bitcoin Price Faces Bearish Patterns

Captain Faibik’s analysis shows Bitcoin trading within a rising wedge on the daily chart. This setup is marked by converging trendlines and often precedes a downside break when it appears after a strong rally. 

The price is currently near the wedge’s upper boundary between $123,000 and $125,000. This is the same zone where liquidity was swept earlier, catching many late long entries. Historically, such liquidity grabs can lead to swift corrections.

If price fails to break and hold above this resistance, sellers could step in. A breakdown below the lower wedge boundary, around $117,000, would be a bearish confirmation. Further downside could open targets near $110,000 and $105,000.

$BTC Liquidity has been grabbed at the highs…

We’ve now printed the 9th TD Sell Candle..

Daily RSI is Printing Bearish Divergence,,

Rising Wedge Formation..

This combination suggests the top might be in & Bearish Rally could be around the corner.

Don’t get trapped… pic.twitter.com/5tghPpFcBv

— Captain Faibik (@CryptoFaibik) August 14, 2025

The daily Relative Strength Index (RSI) is printing a bearish divergence. While price has pushed to higher highs, the RSI has formed lower highs. This divergence suggests that buying pressure may be weakening despite the bullish price action. Such setups often appear near the end of strong trends.

In addition, the chart has now printed a 9th TD Sell candle. This indicator is often interpreted as a sign of trend exhaustion. While not always followed by an immediate reversal, it adds weight to the bearish case when combined with other signals.

BTC Liquidity Sweep Above Highs

Bitcoin’s recent push above $123,000 triggered a sweep of liquidity from previous swing highs. This move likely closed out short positions and trapped aggressive long entries. 

According to Faibik, these types of moves often mark the final stage of a rally before a pullback.

The $123,000 to $125,000 range now stands as a strong resistance area. Traders are watching closely for signs of rejection or consolidation before deciding on their next move.

Per CoinGecko data, Bitcoin is trading at $121,694, up 2.01% in the past 24 hours and 6.27% in the last week. 

The coin set a fresh high of $124,128 within the past few hours. With volatility still high, short-term traders are weighing the risk of chasing the rally against the potential for a correction.

The coming days could be critical. A sustained break above $125,000 would invalidate the wedge breakdown scenario. A failure here, combined with the current bearish signals, could set the stage for a sharper decline.

 

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Filed under: Bitcoin - @ August 14, 2025 8:16 am