Bitcoin Price Prediction: Technical Patterns Signal BTC Crash Toward $101K

Bitcoin’s recent stability above $115,000 may soon give way to a significant downturn as multiple bearish technical indicators converge. While institutional demand for BTC remains strong, chart patterns suggest the possibility of a sharp decline in the coming days or weeks.

On the weekly timeframe, Bitcoin has consistently traded above its 50-week and 100-week Exponential Moving Averages (EMA), showing strong underlying support. However, analysts warn that BTC has now formed a rising wedge pattern—a classic bearish setup.

This formation, connecting higher swing highs since December and lower swing lows since mid-2024, is nearing its convergence point. If the wedge breaks downward, Bitcoin could tumble as much as 26% to $88,000.

Adding to the bearish outlook, the Relative Strength Index (RSI) has developed a descending channel, even as prices have continued to rise. This divergence typically signals weakening momentum and a higher probability of correction.

Double-Top Signals Risk of Breakdown Toward $101K

The daily chart reinforces the bearish sentiment, showing Bitcoin forming a double-top pattern around $123,000 with a neckline near $112,000.

This setup often signals exhaustion of buying pressure. A confirmed breakdown below the neckline could push BTC down to $101,000, representing a 9% slide from the neckline level.

Technical analysts emphasize that this convergence of bearish patterns, rising wedge, bearish RSI divergence, and double-top, creates a precarious environment for traders. Despite Bitcoin’s long-term fundamentals, short-term risks appear elevated.

Federal Reserve Events Could Trigger BTC Volatility

Beyond chart patterns, upcoming macroeconomic events loom large for Bitcoin’s trajectory. The Federal Reserve minutes from its recent meeting, set for release on August 20, will provide clarity on inflation and monetary policy. More crucially, Jerome Powell’s speech at the Jackson Hole Symposium on Friday may serve as the key catalyst.

If Powell delivers a hawkish outlook, signaling tighter monetary policy, risk assets like Bitcoin could face renewed selling pressure. Conversely, dovish commentary may offer short-term relief but is unlikely to offset the looming technical risks.

For now, Bitcoin hovers around $116,000, but the balance of technical evidence suggests investors should brace for heightened volatility—and potentially a crash toward $101K–$88K in the near term.