Is Bitcoin Bottoming At Last? BTC Chart Reveals $123K Price Target

Author: Yashu Gola

Published: July 22, 2026

Key Points

• Bitcoin's weekly falling wedge indicates a potential breakout target near $123,000.
• A bullish RSI divergence suggests that selling momentum is weakening, despite Bitcoin forming lower price lows.
• The bottom remains unconfirmed until Bitcoin breaks above the $72,000–$75,000 range and reclaims the $80,000 resistance area.

Market Overview

As of July 22, Bitcoin (BTC) was trading around $65,970, showing signs of a potential long-term bottom. The analysis highlights two bullish reversal signals on the weekly chart: a falling wedge pattern and a positive divergence in the relative strength index (RSI).

Falling Wedge Analysis

Bitcoin has been trading within a falling wedge pattern since it peaked near $123,000 in late 2025. This pattern is characterized by price declines between two converging trendlines, indicating that sellers may be losing control. The recent price action shows lower highs at $120,000, $95,000, and $80,000, while downside movements have become less severe.

Bitcoin recently bounced from the $56,000–$59,000 region, where the wedge's lower trendline provided support. The first resistance zone is identified around $68,800–$70,100, marked by the 200-week and 20-week exponential moving averages (EMAs). A decisive weekly close above the $72,000–$75,000 range would confirm a breakout, potentially leading to a rally towards $95,200. The maximum height of the wedge suggests a target of approximately $123,000, which is about 85% above current prices.

RSI Divergence

The bullish divergence on Bitcoin's weekly RSI supports the notion of a bottom forming. A bullish divergence occurs when the price makes a lower low while the RSI forms a higher low, indicating that the momentum behind the price decline is weakening. Although Bitcoin recently dropped below its previous local low, the RSI remained above its earlier trough, suggesting that sellers are losing strength.

Confirmation Needed

Despite these bullish signals, Bitcoin remains below all four major weekly EMAs, making the $68,800–$80,000 region a critical resistance area. A rejection in this zone could lead Bitcoin back towards the $57,000–$59,000 range. Conversely, a decisive weekly close below $55,000–$57,000 would invalidate the wedge pattern and expose the $51,000 area.

Conclusion

While the technical indicators suggest that Bitcoin may be nearing a bottom, confirmation through price action is essential. Traders should monitor the key resistance levels closely to gauge the potential for a breakout and subsequent price movements.