Bitcoin (BTCUSD) is trading inside a rising wedge pattern on the 4H chart—typically a bearish reversal structure. Price is currently hovering near the wedge resistance and a previous supply zone, presenting a clean short opportunity with solid risk-to-reward.
📊 Technical Breakdown
1. Rising Wedge Formation
The price action has formed a clear rising wedge, a pattern often associated with a bearish breakout.
Current price action shows momentum fading near the wedge top, aligning with historical resistance.
2. Key Sell Zone
The 88,600–89,000 region marks an ideal short-entry zone.
This overlaps with a prior consolidation/supply block and wedge resistance—making it a high confluence zone.
3. Bearish Target & Projection
Breakdown of wedge support could drive price down toward the target zone near 78,000, a potential -8.89% move.
This target zone acted as a strong demand area in mid-March and is likely to attract buy interest again.
📌 Trade Plan
Sell Entry: Around 88,600–89,000
Stop Loss: Above 92,923 (beyond wedge + supply zone)
Target: 78,000 zone, prior demand and technical projection
Risk-to-Reward: High conviction R:R setup with structured invalidation
⚠️ Watch for Confirmation
Ideal confirmation would be a strong bearish 4H candle below wedge support or bearish divergence on RSI/MACD.
📊 Technical Breakdown
1. Rising Wedge Formation
The price action has formed a clear rising wedge, a pattern often associated with a bearish breakout.
Current price action shows momentum fading near the wedge top, aligning with historical resistance.
2. Key Sell Zone
The 88,600–89,000 region marks an ideal short-entry zone.
This overlaps with a prior consolidation/supply block and wedge resistance—making it a high confluence zone.
3. Bearish Target & Projection
Breakdown of wedge support could drive price down toward the target zone near 78,000, a potential -8.89% move.
This target zone acted as a strong demand area in mid-March and is likely to attract buy interest again.
📌 Trade Plan
Sell Entry: Around 88,600–89,000
Stop Loss: Above 92,923 (beyond wedge + supply zone)
Target: 78,000 zone, prior demand and technical projection
Risk-to-Reward: High conviction R:R setup with structured invalidation
⚠️ Watch for Confirmation
Ideal confirmation would be a strong bearish 4H candle below wedge support or bearish divergence on RSI/MACD.
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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.