This chart illustrates a Rising Wedge Pattern on the weekly timeframe for Bitcoin (BTC/USD), which is generally considered a bearish reversal pattern in technical analysis. The pattern appears after a strong upward move and typically signals that the price is losing momentum and may be preparing for a significant correction.
📐 What is a Rising Wedge Pattern?
A rising wedge is a chart pattern formed when the price consolidates between two upward-sloping trendlines – the support line (bottom) and the resistance line (top) – with the two lines converging toward each other.
As price climbs higher, it forms higher highs and higher lows.
However, the slope of the highs is less steep than the slope of the lows, showing a loss of bullish strength.
Eventually, the price breaks below the support line, often leading to a sharp move downward.
🔍 Key Highlights from the Chart:
📌 1. Major Resistance Zone (~$110K–$120K):
BTC is currently facing heavy resistance in this area.
This zone has historically acted as a supply zone where bulls have struggled to break through.
Multiple rejection wicks indicate strong selling pressure.
📌 2. Pattern Touchpoints:
BTC has now formed multiple touchpoints on both the support and resistance lines of the wedge, confirming the structure.
This gives the pattern higher validity from a technical analysis perspective.
📌 3. SR Interchange Zone (~$65K–$70K):
This is a key horizontal zone where past resistance could act as future support.
A successful breakdown may first test this level before continuation.
📌 4. Retesting After Breakdown:
After breaking the wedge support, a retest of the broken trendline is often seen.
If the retest is rejected, it confirms the breakdown and opens the door to deeper bearish movement.
🎯 Target Projection:
If the wedge breaks down and the bearish scenario plays out, we could see Bitcoin fall to the $22,000–$25,000 region – marked as the final target zone on the chart. This level aligns with:
Previous macro-support zones from 2021
Fibonacci retracement levels
Psychological price levels where buyers may re-enter
⚠️ Bearish Factors to Watch:
Bearish divergence on indicators like RSI or MACD (not shown on chart but worth checking)
Volume decreasing as price rises – a classic wedge behavior
Macroeconomic headwinds or Bitcoin halving-related exhaustion
Rejection from major resistance with strong bearish candles
🕒 Timeframe & Patience:
This is a weekly chart, which means the pattern will play out over weeks or months, not days. Patience is key. A clear break, retest, and rejection would be the most reliable confirmation to expect further downside.
✅ Invalidation Scenario:
If BTC breaks above the wedge resistance line with strong bullish volume and holds above the $120K level, this bearish thesis becomes invalid.
In that case, BTC could enter price discovery mode, making new all-time highs.
💬 Final Thoughts:
This analysis is a technical outlook, not financial advice. Always use stop-loss strategies and manage your risk carefully. Market sentiment, news, and macro factors can quickly shift the scenario. However, from a purely technical standpoint, the rising wedge pattern is a powerful signal that should not be ignored.
📐 What is a Rising Wedge Pattern?
A rising wedge is a chart pattern formed when the price consolidates between two upward-sloping trendlines – the support line (bottom) and the resistance line (top) – with the two lines converging toward each other.
As price climbs higher, it forms higher highs and higher lows.
However, the slope of the highs is less steep than the slope of the lows, showing a loss of bullish strength.
Eventually, the price breaks below the support line, often leading to a sharp move downward.
🔍 Key Highlights from the Chart:
📌 1. Major Resistance Zone (~$110K–$120K):
BTC is currently facing heavy resistance in this area.
This zone has historically acted as a supply zone where bulls have struggled to break through.
Multiple rejection wicks indicate strong selling pressure.
📌 2. Pattern Touchpoints:
BTC has now formed multiple touchpoints on both the support and resistance lines of the wedge, confirming the structure.
This gives the pattern higher validity from a technical analysis perspective.
📌 3. SR Interchange Zone (~$65K–$70K):
This is a key horizontal zone where past resistance could act as future support.
A successful breakdown may first test this level before continuation.
📌 4. Retesting After Breakdown:
After breaking the wedge support, a retest of the broken trendline is often seen.
If the retest is rejected, it confirms the breakdown and opens the door to deeper bearish movement.
🎯 Target Projection:
If the wedge breaks down and the bearish scenario plays out, we could see Bitcoin fall to the $22,000–$25,000 region – marked as the final target zone on the chart. This level aligns with:
Previous macro-support zones from 2021
Fibonacci retracement levels
Psychological price levels where buyers may re-enter
⚠️ Bearish Factors to Watch:
Bearish divergence on indicators like RSI or MACD (not shown on chart but worth checking)
Volume decreasing as price rises – a classic wedge behavior
Macroeconomic headwinds or Bitcoin halving-related exhaustion
Rejection from major resistance with strong bearish candles
🕒 Timeframe & Patience:
This is a weekly chart, which means the pattern will play out over weeks or months, not days. Patience is key. A clear break, retest, and rejection would be the most reliable confirmation to expect further downside.
✅ Invalidation Scenario:
If BTC breaks above the wedge resistance line with strong bullish volume and holds above the $120K level, this bearish thesis becomes invalid.
In that case, BTC could enter price discovery mode, making new all-time highs.
💬 Final Thoughts:
This analysis is a technical outlook, not financial advice. Always use stop-loss strategies and manage your risk carefully. Market sentiment, news, and macro factors can quickly shift the scenario. However, from a purely technical standpoint, the rising wedge pattern is a powerful signal that should not be ignored.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.