Bitcoin Approaches Key Wedge Breakout Amid Strong Capital Inflows and Market Uncertainty

Key Points

1. Bitcoin is consolidating within a narrowing wedge pattern between $109,000 and $123,000, with recent price action including a bull trap near $122,000.

2. Capital inflows of $82 billion over the past 30 days demonstrate sustained investor interest, though below the December 2024 peak of $135 billion.

3. The market is currently in an emotional cycle, with phases of optimism, bull traps, panic, and silence influencing price movements.

4. A decisive breakout above $122,000 could trigger bullish momentum, while a drop below $116,000 may indicate bearish pressure.

5. Traders are closely monitoring the $122,000 and $116,000 levels for signals of Bitcoin's next major trend.