Bitcoin Approaches $122K Resistance in Broadening Wedge Amid Rising DeFi Activity

• Bitcoin’s broadening wedge forms higher highs and lower lows since mid-2025, with current price action testing the upper boundary near $122,000.

• On-chain data reveals increasing active addresses and liquidity, bolstering Bitcoin’s stability around $110,000 support.

• DeFi total value locked on Bitcoin has surged to $8.29 billion, up 2.31% in the last 24 hours, signaling heightened engagement.

Bitcoin broadening wedge nears completion at $113K, with $122K resistance in sight amid rising DeFi activity. Discover key support levels and market signals for potential new highs. Stay informed on BTC trends today.

What is the Bitcoin Broadening Wedge Pattern?

Bitcoin broadening wedge is a technical chart pattern characterized by expanding price swings, with higher highs and lower lows forming over time, indicating increasing volatility. On the daily chart, Bitcoin has been trading within this formation since mid-2025, oscillating between $95,000 and $125,000. As of now, the price hovers around $113,800, approaching the upper resistance and setting the stage for a potential breakout or reversal.

Bitcoin trades near $113K within a broadening wedge, with $122K resistance and rising DeFi activity signaling possible new highs.

• Bitcoin trades near $113K within a broadening wedge, with resistance forming around $122K.
• On-chain and DeFi data show rising network activity and liquidity supporting Bitcoin’s upward momentum.
• Analysts note $110K as key support, with a breakout above $122K possibly leading to record highs.

Bitcoin (BTC) continues to trade within a broadening wedge structure on the daily chart, maintaining strong momentum near upper resistance levels. Price movement has expanded between $95,000 and $125,000 since mid-2025, showing rising volatility. At the time of writing, Bitcoin trades around $113,800, reflecting stable upward pressure and growing market participation.

How Does Rising DeFi Activity Influence Bitcoin’s Price Momentum?

The integration of Bitcoin into decentralized finance protocols has significantly boosted its utility and liquidity, contributing to sustained price support. Data from DeFiLlama shows Bitcoin’s total value locked reaching $8.29 billion, marking a 2.31% increase over the past 24 hours. This growth, from under $1 billion in early 2024, underscores expanding adoption on platforms using Bitcoin as collateral for lending and yield farming.

According to analysis prepared by Titan of Crypto, Bitcoin’s broadening wedge pattern has developed through six major points between June and November 2025. The structure shows expanding swings, with higher highs and lower lows defining its range. The price now moves close to the upper boundary around $122,000, marking a crucial phase before the pattern completes.

Data from TradingView indicates Bitcoin has fluctuated steadily between $95,000 and $125,000. Each rebound established new highs, while retracements formed deeper lows, shaping the broadening formation. The 1-hour chart reveals upward momentum building following consolidation around $110,000. ADX indicator is reading 38.48, showing the strengthening of trend direction

Source: TradingView

Trading volume has supported these movements, confirming stable liquidity across major exchanges. The broader market environment also remains favorable. The most recent U.S. Consumer Price Index indicated an annual increase of 3%, slightly lower than the projections. This softened the inflation reading which supported the equity markets, and hence, assisted the digital assets to maintain their bullish tone. Chain data further highlights this trend, with daily fees and revenues totaling $241,487 and token incentives amounting to $97.21 million. Active addresses have climbed to 595,504, while daily inflows reached $1,618, all pointing to robust network engagement.

Market liquidity heat maps reveal concentrated activity between $114,000 and $116,000, attracting fresh bids and reinforcing the bullish structure. According to DeFiLlama data, Bitcoin’s total value locked (TVL) in decentralized finance has reached $8.29 billion, a 2.31% increase in 24 hours. The metric has since increased upward since below $1 billion early in 2024 and is steadily growing on blockchain-based platforms with Bitcoin as collateral.

Source: DeFiLlama

Experts from Titan of Crypto emphasize that a successful breakout above the broadening wedge’s upper trendline could propel Bitcoin toward unprecedented levels, driven by these on-chain developments. The pattern’s completion often signals a decisive move, and current indicators like the ADX above 30 confirm a strengthening trend. Maintaining support above $110,000 remains critical to preserving the bullish outlook, as any breakdown could lead to retesting lower boundaries near $95,000.

Institutional interest continues to play a role, with reports from financial analysts noting increased Bitcoin allocations in portfolios amid favorable macroeconomic data. The 3% CPI reading aligns with expectations of steady interest rate policies, further aiding risk assets like BTC. Overall, the combination of technical patterns and fundamental metrics positions Bitcoin for continued scrutiny as it navigates this volatile phase.

Frequently Asked Questions

What Happens if Bitcoin Breaks Out of the Broadening Wedge Pattern?

If Bitcoin breaks above the $122,000 resistance in the broadening wedge, it could target new all-time highs, potentially exceeding previous peaks from 2025. Analysts from Titan of Crypto suggest this would confirm bullish continuation, supported by rising DeFi TVL and on-chain activity, though volume confirmation is essential to avoid false breakouts.

Is $110,000 a Critical Support Level for Bitcoin Right Now?

Yes, $110,000 serves as a vital support level within the current broadening wedge, where recent consolidations have held firm. On-chain data shows strong liquidity here, and a drop below could signal weakening momentum, but sustained trading above this threshold aligns with the pattern’s bullish structure and growing DeFi engagement.

Key Takeaways

• Broadening Wedge Structure: Bitcoin’s price has expanded between $95,000 and $125,000 since mid-2025, with $113,800 testing upper resistance at $122,000.
• DeFi and On-Chain Boost: TVL at $8.29 billion marks a 2.31% daily rise, alongside 595,504 active addresses, indicating robust network health.
• Support and Breakout Potential: Hold above $110,000 maintains the bullish setup; a $122,000 breakout could drive toward record highs in the coming months.

Conclusion

The Bitcoin broadening wedge pattern highlights increasing volatility as the asset trades near $113,000, with $122,000 resistance and rising DeFi activity providing a positive foundation. On-chain metrics and technical indicators like the ADX at 38.48 reinforce the potential for upward resolution. As market liquidity concentrates around key levels, investors should monitor support at $110,000 closely, positioning for possible new highs that could redefine Bitcoin’s trajectory in late 2025.