Bitcoin eyes rebound on bullish wedge

Bitcoin (BTCUSD) has pulled back from its October 6 peak of 126,227, forming a potential falling wedge. A bullish divergence on the daily MACD supports a tactical rally. Reclaiming the 13-, 26-, and 40-day moving averages at 106,180–111,750 would confirm the wedge and open upside toward prior highs near 123,000–126,227. Key support to watch: the early November low at 98,983.

Bitcoin (BTCUSD): Improving momentum sets up a bullish wedge

Bitcoin / U.S. Dollar (BTCUSD) has struggled since peaking at 126,227 on October 6, but the overlapping highs and lows since then suggest the pullback is corrective. This price action is forming a potential falling wedge, a pattern often associated with bullish reversals.

A higher low in negative territory on the daily MACD histogram, while BTCUSD made a lower low in early November, creates a bullish divergence that supports the wedge setup. Historically, similar positive divergences since early 2025 have triggered tactical rallies in BTCUSD.

The next step: Reclaiming the 13-, 26-, and 40-day moving averages at 106,180, 108,140, and 111,750, respectively. Achieving this would confirm the bullish wedge and open the door for upside toward prior highs from July, August, and October, in the 123,000–126,227 range. Until then, holding above the early November low at 98,983 would maintain conviction in the developing bullish wedge pattern.

Chart 1: Bitcoin / U.S. Dollar (BTCUSD): Daily chart with moving averages