Bitcoin (BTCUSD) on the 1H timeframe is displaying a bearish reversal structure after failing to sustain a breakout above key resistance. The recent price action has formed a Rising Wedge Pattern, which typically precedes a downside correction, especially when formed near a key supply zone. Let’s break down the setup:
🔍 Technical Analysis Overview:
🔹 1. Rising Wedge Pattern (Bearish)
A rising wedge is visible near the top of the recent bullish impulse. This wedge is characterized by converging trendlines with higher highs and higher lows, but with diminishing momentum. It typically signals a weakening uptrend and a potential trend reversal or correction once price breaks below the lower wedge boundary.
The breakout to the downside has already begun, confirming bearish intent.
🔹 2. SR Interchange Zone
The blue zone marked in the chart represents a Support-Resistance Interchange (SR Flip). This was previously an area of consolidation and breakout, acting as a key decision zone. Price is expected to retest this zone after the wedge breakdown before continuing further down.
This creates a perfect "Break → Retest → Drop" scenario, often favored by institutional and swing traders.
🔹 3. Consolidation Structure
Before the wedge formation, Bitcoin was stuck in a prolonged consolidation phase. This type of ranging price action often accumulates orders before a breakout. Once broken, these zones serve as magnets for pullbacks or liquidity grabs, and are frequently retested.
🔹 4. Target Zone
The measured move from the rising wedge pattern points to a target near $101,617, which aligns with a previous structural low and a potential demand zone. This area could serve as the next major support level.
🎯 Trade Strategy & Setup:
Entry: After confirmation of breakdown and a clean retest of the SR zone.
Stop Loss (SL): Just above the wedge high and structural resistance (~$108,020).
Target (TP): $101,617 (downside projection based on wedge height and price structure).
📌 Risk-Reward Setup: 1:3+ possible if retest confirms.
🧠 Trader’s Insight:
This setup reflects a common smart-money behavior where price forms a bullish-looking structure (rising wedge), entices buyers, and then traps them with a swift breakdown. The SR retest provides a low-risk shorting opportunity. Patience is key — let price come to your level before entering.
🚨 Risk Note:
If BTC reclaims and holds above the $108,020 level, the bearish thesis may be invalidated. Always wait for confirmation before execution.
🔍 Technical Analysis Overview:
🔹 1. Rising Wedge Pattern (Bearish)
A rising wedge is visible near the top of the recent bullish impulse. This wedge is characterized by converging trendlines with higher highs and higher lows, but with diminishing momentum. It typically signals a weakening uptrend and a potential trend reversal or correction once price breaks below the lower wedge boundary.
The breakout to the downside has already begun, confirming bearish intent.
🔹 2. SR Interchange Zone
The blue zone marked in the chart represents a Support-Resistance Interchange (SR Flip). This was previously an area of consolidation and breakout, acting as a key decision zone. Price is expected to retest this zone after the wedge breakdown before continuing further down.
This creates a perfect "Break → Retest → Drop" scenario, often favored by institutional and swing traders.
🔹 3. Consolidation Structure
Before the wedge formation, Bitcoin was stuck in a prolonged consolidation phase. This type of ranging price action often accumulates orders before a breakout. Once broken, these zones serve as magnets for pullbacks or liquidity grabs, and are frequently retested.
🔹 4. Target Zone
The measured move from the rising wedge pattern points to a target near $101,617, which aligns with a previous structural low and a potential demand zone. This area could serve as the next major support level.
🎯 Trade Strategy & Setup:
Entry: After confirmation of breakdown and a clean retest of the SR zone.
Stop Loss (SL): Just above the wedge high and structural resistance (~$108,020).
Target (TP): $101,617 (downside projection based on wedge height and price structure).
📌 Risk-Reward Setup: 1:3+ possible if retest confirms.
🧠 Trader’s Insight:
This setup reflects a common smart-money behavior where price forms a bullish-looking structure (rising wedge), entices buyers, and then traps them with a swift breakdown. The SR retest provides a low-risk shorting opportunity. Patience is key — let price come to your level before entering.
🚨 Risk Note:
If BTC reclaims and holds above the $108,020 level, the bearish thesis may be invalidated. Always wait for confirmation before execution.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
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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.