Chart Overview:
This chart represents Bitcoin (BTC/USD) on the 1-hour timeframe and showcases a Rising Wedge pattern. The price action has reached a key resistance level, and a potential breakdown scenario is unfolding.
1️⃣ Pattern Identification: Rising Wedge Formation
A Rising Wedge is a bearish reversal pattern that forms when price moves within two converging upward-sloping trendlines. The narrowing price range indicates a weakening trend, and a breakdown usually leads to a significant price drop.
Upper Trendline (Resistance): Marked in blue, this trendline connects the higher highs.
Lower Trendline (Support): Also in blue, connecting the higher lows.
Breakdown Confirmation: The price has already moved below the wedge support, confirming the bearish bias.
2️⃣ Key Price Levels & Zones
🔹 Resistance Zone (Blue Box)
This strong resistance level has repeatedly rejected the price.
The final rejection led to a breakout failure and potential trend reversal.
🔹 Support Zone (Blue Box)
A strong demand zone, but a breakdown below it triggers a bearish trend.
This level is now acting as potential resistance after the breakdown.
🔹 ATH (All-Time High) – $87,566
This marks the highest price level reached in the given timeframe.
3️⃣ Market Structure Breakdown
🔻 Bearish Momentum & Breakdown
After touching the resistance, BTC failed to sustain upward movement.
A breakout of the wedge's lower trendline confirms a trend reversal.
Price action suggests a lower-high, lower-low structure, indicating a bearish market shift.
📉 Expected Price Movement (Wave Structure)
The breakout retest could result in a small pullback to previous support (now resistance).
After confirmation, price is likely to continue downward in a wave-like structure.
Fibonacci levels or key support zones will act as profit-taking targets.
4️⃣ Trade Setup & Targets
🔻 Short Setup (Bearish Trade Idea)
Entry: On a successful retest of the broken support zone.
Stop-Loss (SL): Above the previous resistance zone for risk management.
Take Profit (TP) Targets:
TP 1: $81,638
TP 2: $77,897
Final Target: $74,990
5️⃣ Summary & Conclusion
📌 BTC/USD has broken out of a Rising Wedge pattern, confirming a bearish trend.
📌 A pullback and retest may occur before further downside continuation.
📌 The chart suggests a short opportunity, targeting lower support zones for potential profit-taking.
📌 Traders should manage risk with a well-placed stop-loss above key resistance.
This setup aligns with technical analysis principles, confirming a high-probability short trade for BTC. 🚀
This chart represents Bitcoin (BTC/USD) on the 1-hour timeframe and showcases a Rising Wedge pattern. The price action has reached a key resistance level, and a potential breakdown scenario is unfolding.
1️⃣ Pattern Identification: Rising Wedge Formation
A Rising Wedge is a bearish reversal pattern that forms when price moves within two converging upward-sloping trendlines. The narrowing price range indicates a weakening trend, and a breakdown usually leads to a significant price drop.
Upper Trendline (Resistance): Marked in blue, this trendline connects the higher highs.
Lower Trendline (Support): Also in blue, connecting the higher lows.
Breakdown Confirmation: The price has already moved below the wedge support, confirming the bearish bias.
2️⃣ Key Price Levels & Zones
🔹 Resistance Zone (Blue Box)
This strong resistance level has repeatedly rejected the price.
The final rejection led to a breakout failure and potential trend reversal.
🔹 Support Zone (Blue Box)
A strong demand zone, but a breakdown below it triggers a bearish trend.
This level is now acting as potential resistance after the breakdown.
🔹 ATH (All-Time High) – $87,566
This marks the highest price level reached in the given timeframe.
3️⃣ Market Structure Breakdown
🔻 Bearish Momentum & Breakdown
After touching the resistance, BTC failed to sustain upward movement.
A breakout of the wedge's lower trendline confirms a trend reversal.
Price action suggests a lower-high, lower-low structure, indicating a bearish market shift.
📉 Expected Price Movement (Wave Structure)
The breakout retest could result in a small pullback to previous support (now resistance).
After confirmation, price is likely to continue downward in a wave-like structure.
Fibonacci levels or key support zones will act as profit-taking targets.
4️⃣ Trade Setup & Targets
🔻 Short Setup (Bearish Trade Idea)
Entry: On a successful retest of the broken support zone.
Stop-Loss (SL): Above the previous resistance zone for risk management.
Take Profit (TP) Targets:
TP 1: $81,638
TP 2: $77,897
Final Target: $74,990
5️⃣ Summary & Conclusion
📌 BTC/USD has broken out of a Rising Wedge pattern, confirming a bearish trend.
📌 A pullback and retest may occur before further downside continuation.
📌 The chart suggests a short opportunity, targeting lower support zones for potential profit-taking.
📌 Traders should manage risk with a well-placed stop-loss above key resistance.
This setup aligns with technical analysis principles, confirming a high-probability short trade for BTC. 🚀
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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.
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.