Main points:
The rising wedge pattern for Bitcoin indicates a possible decline to $74,000 if a crucial support threshold fails.
A new whale has initiated $140 million in short positions on BTC.
Bitcoin’s (BTC) technical framework indicates a potential correction down to $74,000, as whales have increased their short positions on BTC.
Bitcoin’s rising wedge indicates a 34% price drop
The weekly chart reveals the BTC/USD pair trading within a rising wedge, with the price currently testing support at the pattern’s lower trendline at $110,000.
Related: US Bitcoin and Ether ETFs recover as Powell hints at rate cuts
A weekly candlestick close below this point may pave the way for Bitcoin’s decline toward the wedge’s bearish target of $74,000, marking a 34% fall from its current price. This aligns with its previous peak from March 2024.
Bitcoin’s bearish outlook is supported by a growing bullish divergence between its price and the relative strength index, illustrated in the chart above.
Rising wedges are generally bearish reversal patterns, and BTC’s ongoing consolidation between the trendlines suggests that “Bitcoin’s bull run is nearing its conclusion,” according to analyst Captain Faibik.
“Bitcoin remains within the rising wedge, and bulls are managing it for now, but not for long,” the analyst stated in a recent X post, adding:
“Momentum is waning, and once the wedge breaks, bears will dominate, leading to a sharp correction.”
Veteran trader Peter Brandt suggested that Bitcoin might experience a “major shakeout” before reaching new all-time highs above $126,000.
“I believe the days of seeing an 80% decline are over, but a drop to $50-60,000 could occur to test the lower end of the range.”
As Cointelegraph noted, multiple technical and on-chain metrics hint that the BTC/USD pair could decline to $74,000 if it fails to maintain support above the $110,000 level.
Bitcoin whale places $140 million BTC short bet
Bitcoin bears are intensifying their short positions as calls for a significant price decline grow louder.
According to Lookonchain, a Hyperliquid whale has taken a short position valued at $140 million, with 5x leverage and a liquidation price set at $137,700.
Another whale, 0xc2a3, just opened a 5x short on 1,240 $BTC($140M) on #Hyperliquid.
Liquidation price: $137,700https://t.co/9PPQWCKRHj pic.twitter.com/3yLHGDKMAi
— Lookonchain (@lookonchain) October 15, 2025
This is not the only whale wagering on Bitcoin’s downfall. On Tuesday, another Bitcoin whale that shorted BTC last week expanded a $500 million downside bet, utilizing 10x leverage.
Meanwhile, on-chain data indicated that the ratio of unrealized profit and loss (NUPL) has transitioned from “optimism” to “euphoria,” a shift that has historically preceded significant market peaks.
This article does not provide investment advice or recommendations. All investment and trading activities entail risk, and readers should undertake their own research before making decisions.
