This detailed technical analysis of Bitcoin (BTC/USD) on the 1-hour timeframe highlights a Rising Wedge pattern, key support and resistance levels, a trade setup, and projected price movements. The chart suggests a bearish breakdown, and traders can use this analysis to make informed decisions.
1. Understanding the Chart Pattern – Rising Wedge Formation
A Rising Wedge is a bearish reversal pattern that occurs when the price moves upwards within two converging trendlines. The slope of the lower trendline is steeper than the upper trendline, indicating weaker bullish momentum and an increasing probability of a downside breakdown.
📌 Key Observations:
The black solid trendlines outline the wedge pattern.
The price action remained inside this wedge from March 11 to March 26, 2025.
A breakdown has now occurred, confirming bearish momentum.
🔺 Why is this Bearish?
Rising Wedges are considered distribution patterns, meaning buyers are losing strength, and sellers are gradually taking control.
The price fails to make aggressive new highs and instead grinds upward weakly.
Once support is broken, a strong sell-off usually follows.
2. Key Chart Levels – Support & Resistance Zones
🔵 Resistance Level (Upper Bound of Wedge & Supply Zone)
The red arrow marks a strong rejection at $88,500 - $89,000, which acted as a major resistance level.
This zone has seen multiple failed breakout attempts, signaling that sellers dominate this area.
Stop-losses for short trades should be placed above this resistance zone.
🟢 Support Level (Lower Bound of Wedge & Demand Zone)
The wedge's lower boundary previously acted as strong support until it was breached.
The blue highlighted box represents a demand zone around $81,000, where buyers previously stepped in.
Losing this level could trigger a much stronger bearish move.
3. Breakdown Confirmation & Trading Setup
With the wedge broken to the downside, we now look for a confirmed bearish setup to enter a trade.
📉 Bearish Confirmation:
✅ The price broke below the wedge’s lower boundary, signaling a reversal.
✅ A retest of the broken wedge trendline confirms the breakdown.
✅ The price is now showing lower highs and lower lows, indicating a new bearish trend.
🎯 Trade Setup – How to Play This Move?
🔴 Entry for Short Position:
Enter short between $86,900 - $87,200 after confirming a rejection at the broken trendline.
🔵 Stop Loss:
Place a stop-loss above $89,282 to protect against a fakeout.
If BTC closes back inside the wedge, the short setup is invalidated.
🟢 Target 1: $81,000 – This is a key demand zone, and price might temporarily bounce here.
🟢 Target 2: $79,031 – This is the next strong support level, making it a final bearish target.
⚠ Risk Management Note:
Adjust position size based on risk tolerance.
Be mindful of short squeezes (where price temporarily spikes before continuing lower).
4. Expected Price Movement – Bearish Projection
🔮 The dashed black lines on the chart indicate a likely price pathway:
1️⃣ A breakdown below the wedge, followed by a minor retest of the broken trendline.
2️⃣ A continuation toward $81,000 (support level).
3️⃣ A small bounce before further decline.
4️⃣ The price reaching the final target of $79,031, where buyers may start accumulating again.
📌 If Bitcoin breaks below $81,000 with high volume, the bearish trend will likely accelerate.
5. Market Psychology & Trading Strategy
📌 Why This Setup Makes Sense?
The market exhibited exhaustion at the top of the wedge.
The break-and-retest confirms seller dominance.
The lower highs & lower lows show bearish momentum.
🚀 Alternative Bullish Scenario?
If BTC reclaims the wedge and breaks above $89,000, then the bearish setup is invalid.
A close above $89,500 would signal strong buying pressure and potential bullish continuation.
6. Conclusion – What to Watch Next?
🔎 Key Points to Monitor:
✔ Retest & rejection at $87,000 – $88,000 (confirming bearish momentum).
✔ Break of $81,000 to signal continuation toward the target.
✔ Stop-loss protection above $89,000 to manage risk.
📊 Final Thoughts:
The Rising Wedge breakdown suggests a shift from bullish to bearish sentiment.
This is a high-probability short trade with well-defined entry, stop-loss, and targets.
Traders should wait for price action confirmation before entering trades.
Would you like any refinements, or do you need further trade ideas? 🚀📉
1. Understanding the Chart Pattern – Rising Wedge Formation
A Rising Wedge is a bearish reversal pattern that occurs when the price moves upwards within two converging trendlines. The slope of the lower trendline is steeper than the upper trendline, indicating weaker bullish momentum and an increasing probability of a downside breakdown.
📌 Key Observations:
The black solid trendlines outline the wedge pattern.
The price action remained inside this wedge from March 11 to March 26, 2025.
A breakdown has now occurred, confirming bearish momentum.
🔺 Why is this Bearish?
Rising Wedges are considered distribution patterns, meaning buyers are losing strength, and sellers are gradually taking control.
The price fails to make aggressive new highs and instead grinds upward weakly.
Once support is broken, a strong sell-off usually follows.
2. Key Chart Levels – Support & Resistance Zones
🔵 Resistance Level (Upper Bound of Wedge & Supply Zone)
The red arrow marks a strong rejection at $88,500 - $89,000, which acted as a major resistance level.
This zone has seen multiple failed breakout attempts, signaling that sellers dominate this area.
Stop-losses for short trades should be placed above this resistance zone.
🟢 Support Level (Lower Bound of Wedge & Demand Zone)
The wedge's lower boundary previously acted as strong support until it was breached.
The blue highlighted box represents a demand zone around $81,000, where buyers previously stepped in.
Losing this level could trigger a much stronger bearish move.
3. Breakdown Confirmation & Trading Setup
With the wedge broken to the downside, we now look for a confirmed bearish setup to enter a trade.
📉 Bearish Confirmation:
✅ The price broke below the wedge’s lower boundary, signaling a reversal.
✅ A retest of the broken wedge trendline confirms the breakdown.
✅ The price is now showing lower highs and lower lows, indicating a new bearish trend.
🎯 Trade Setup – How to Play This Move?
🔴 Entry for Short Position:
Enter short between $86,900 - $87,200 after confirming a rejection at the broken trendline.
🔵 Stop Loss:
Place a stop-loss above $89,282 to protect against a fakeout.
If BTC closes back inside the wedge, the short setup is invalidated.
🟢 Target 1: $81,000 – This is a key demand zone, and price might temporarily bounce here.
🟢 Target 2: $79,031 – This is the next strong support level, making it a final bearish target.
⚠ Risk Management Note:
Adjust position size based on risk tolerance.
Be mindful of short squeezes (where price temporarily spikes before continuing lower).
4. Expected Price Movement – Bearish Projection
🔮 The dashed black lines on the chart indicate a likely price pathway:
1️⃣ A breakdown below the wedge, followed by a minor retest of the broken trendline.
2️⃣ A continuation toward $81,000 (support level).
3️⃣ A small bounce before further decline.
4️⃣ The price reaching the final target of $79,031, where buyers may start accumulating again.
📌 If Bitcoin breaks below $81,000 with high volume, the bearish trend will likely accelerate.
5. Market Psychology & Trading Strategy
📌 Why This Setup Makes Sense?
The market exhibited exhaustion at the top of the wedge.
The break-and-retest confirms seller dominance.
The lower highs & lower lows show bearish momentum.
🚀 Alternative Bullish Scenario?
If BTC reclaims the wedge and breaks above $89,000, then the bearish setup is invalid.
A close above $89,500 would signal strong buying pressure and potential bullish continuation.
6. Conclusion – What to Watch Next?
🔎 Key Points to Monitor:
✔ Retest & rejection at $87,000 – $88,000 (confirming bearish momentum).
✔ Break of $81,000 to signal continuation toward the target.
✔ Stop-loss protection above $89,000 to manage risk.
📊 Final Thoughts:
The Rising Wedge breakdown suggests a shift from bullish to bearish sentiment.
This is a high-probability short trade with well-defined entry, stop-loss, and targets.
Traders should wait for price action confirmation before entering trades.
Would you like any refinements, or do you need further trade ideas? 🚀📉
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t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
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.
💰FREE GOLD signals in Telegram:
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
t.me/goldmastertradezone
💰FREE GOLD Scalping signals Daily 5-6 Trades in Telegram: t.me/goldmastertradezone
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.