Bitcoin Price Today: Bitcoin Declining Below the $116K Support Will Mean A Bearish Triangle Breakout—Here’s What It Means

While Bitcoin surged past $123,000 earlier this month, the current consolidation between $116,000 and $120,000 has caught the attention of analysts, especially with technical signals aligning for a major directional move. Market observers warn that a confirmed break below $116K would invalidate bullish momentum, creating the potential for an extended downside.

Bitcoin’s recent price action has formed a descending triangle on the 4-hour chart, often considered a bearish continuation pattern. With the lower trendline support anchored between $115,000 and $116,000, bulls have thus far defended the zone. However, repeated tests of this support and a failure to break above $121,000 resistance suggest mounting selling pressure.

Bitcoin is currently retesting the key support zone around $116,000–$117,000 after facing strong rejection from the descending triangle trendline, with a potential drop to $111,000 if support fails. Source: @TradingGainx via X

At the time of writing, Bitcoin is trading around $116,041, hovering just above the lower boundary of the triangle. The RSI indicator recently touched oversold levels at 37.8, hinting at temporarily exhausted bearish momentum. Yet, price action remains under the descending trendline, now acting as resistance.

Adding to the tension is a visible fair value gap (FVG) between $119,000 and $121,000, which could attract bullish attempts if buyers regain control. But unless BTC reclaims the descending resistance, analysts caution that bears could trigger a breakdown toward lower support levels.

Several external market forces have contributed to Bitcoin’s pullback from its $123K peak. Galaxy Digital reportedly sold over 12,850 BTC, worth approximately $1.5 billion, across multiple exchanges. This institutional selling added downward pressure, coinciding with dormant Bitcoin whales reactivating to liquidate significant holdings.

Galaxy Digital moved nearly 30,000 BTC worth $3.5B to exchanges—most of it sold—then withdrew $1.15B in USDT, while still holding 18,504 BTC valued at $2.14B. Source: Lookonchain via X

According to analyst Ki Young Ju, this behavior reflects a shifting trend compared to the 2021 cycle. While whales previously sold to retail buyers, this cycle has seen them transferring positions to new long-term institutional holders.

The classic Bitcoin cycle theory appears broken, as long-term whales now dominate over retail traders—marking a major shift driven by unexpected institutional adoption and altering traditional market patterns. Source: Ki Young Ju via X

Despite the short-term bearish outlook, many institutional players continue to accumulate during dips, confident in Bitcoin’s long-term fundamentals—particularly with Bitcoin halving 2025 approaching and on-chain data showing healthy miner revenues.

While Bitcoin struggles near support, some large players are expressing bold optimism. A recent $23.7 million options trade revealed a whale bet on BTC reaching $200,000 by the end of 2025. The strategy—a bull call spread—involves buying a $140,000 December call and simultaneously selling a $200,000 call.

Despite Bitcoin stalling amid supply from an OG wallet, a $23.7M year-end call spread targeting $140K–$200K suggests strong bullish conviction remains. Source: @DeribitInsights via X

This structure limits both downside risk and upside potential, suggesting disciplined bullish sentiment. If Bitcoin settles above $200K by expiration, the trade would hit maximum profit. Though aggressive, it reflects ongoing confidence in Bitcoin’s potential amid macroeconomic uncertainty and inflation hedging narratives.

Crypto entrepreneur Arthur Hayes recently echoed this long-term optimism, projecting that Bitcoin could reach $250,000 by the end of 2025, aligning with broader forecasts based on post-halving cycles.

With Bitcoin price today teetering just above the $116K support, all eyes are on whether bulls can defend this key level—or if bears will confirm a bearish triangle breakout. A decisive move below this threshold could open the door to a deeper correction, while reclaiming the $119K–$121K zone may reignite bullish momentum.

Bitcoin (BTC) was trading at around $116,282, down 2.66% in the last 24 hours at press time. Source: Bitcoin Liquid Index (BLX) via Brave New Coin

As Bitcoin halving 2025 nears and institutional positioning becomes more visible, investors should monitor both technical and macro developments closely. Whether BTC breaks down or stages a bounce, the coming sessions could set the tone for Bitcoin’s next major trend.