This BTC/USD 4-hour chart showcases a potential bullish breakout setup based on technical patterns, key support and resistance levels, and price action analysis. The chart suggests a trend reversal following a downtrend, with signs of bullish momentum building up.
Let's break down the full technical analysis, covering the chart structure, key levels, price patterns, and trading strategy.
1. Market Structure & Identified Patterns
A. Double Bottom Reversal – Strong Bullish Signal
A double bottom pattern has formed, which is a bullish reversal signal that indicates the end of a downtrend.
This pattern consists of two significant low points (Bottom 1 and Bottom 2) near the $80,000 - $81,000 support zone.
The pattern confirms strong buying interest at this level, preventing further price drops.
A breakout above the resistance level would confirm the pattern’s validity, signaling a move toward higher targets.
B. Rising Wedge Formation – Potential Bullish Breakout
The price action is consolidating in a rising wedge, forming higher highs and higher lows within a narrowing range.
A rising wedge often suggests a potential breakout.
Since this wedge forms after a double bottom, the breakout is expected to be bullish, rather than a bearish breakdown.
If the price breaks above the wedge’s upper trendline, it will confirm a strong upward momentum.
2. Key Support & Resistance Levels
Support Levels:
Major Support Zone (80,000 – 81,000):
This level has been tested twice, confirming buyer strength.
It serves as the foundation for the double bottom pattern.
Stop Loss Level (72,921):
If the price drops below this level, it would invalidate the bullish setup.
This level is strategically placed to manage risk and protect against potential downturns.
Resistance Levels:
First Resistance Zone (95,000 – 100,000):
This is a critical level, as the price has faced multiple rejections here.
A breakout above this zone would confirm a strong bullish trend continuation.
Take Profit Targets:
TP1 (108,481): The first take-profit target aligns with previous highs and is a logical point for partial profit booking.
TP2 (114,372): This is the second profit target, calculated based on Fibonacci extensions and historical price movements.
3. Trading Strategy & Execution Plan
A. Entry Strategy
To execute a successful trade, we need to wait for confirmation of the breakout.
Ideal Entry: After a strong breakout above 95,000 – 100,000, indicating bullish momentum.
Confirmation Factors:
Increased trading volume → Signals strong buying interest.
Candle close above resistance → Confirms breakout.
Retest of broken resistance as support → Strengthens bullish continuation.
B. Risk Management
Stop Loss Placement: Below 72,921, ensuring limited downside risk.
Risk-to-Reward Ratio: The trade setup aims for a 1:3 or better risk-to-reward ratio.
C. Potential Scenarios
✅ Bullish Breakout:
If BTC breaks and holds above 95,000 – 100,000, we can expect a rally toward 108,481 (TP1) and 114,372 (TP2).
❌ Bearish Rejection:
If BTC fails to break resistance, it could retest 80,000 or drop lower, invalidating the bullish setup.
4. Final Thoughts – What to Expect?
This BTC/USD 4-hour chart analysis provides a high-probability bullish trade setup, supported by:
✅ Double Bottom Formation → Strong Reversal Signal
✅ Rising Wedge Breakout Potential → Momentum Building
✅ Key Resistance Breakout Levels Identified
📌 Conclusion:
If Bitcoin breaks above 95,000 – 100,000, expect a major bullish move toward 108,481 and beyond. However, if resistance holds, we might see a retest of lower support levels. Risk management is essential for a successful trade execution. 🚀
Let's break down the full technical analysis, covering the chart structure, key levels, price patterns, and trading strategy.
1. Market Structure & Identified Patterns
A. Double Bottom Reversal – Strong Bullish Signal
A double bottom pattern has formed, which is a bullish reversal signal that indicates the end of a downtrend.
This pattern consists of two significant low points (Bottom 1 and Bottom 2) near the $80,000 - $81,000 support zone.
The pattern confirms strong buying interest at this level, preventing further price drops.
A breakout above the resistance level would confirm the pattern’s validity, signaling a move toward higher targets.
B. Rising Wedge Formation – Potential Bullish Breakout
The price action is consolidating in a rising wedge, forming higher highs and higher lows within a narrowing range.
A rising wedge often suggests a potential breakout.
Since this wedge forms after a double bottom, the breakout is expected to be bullish, rather than a bearish breakdown.
If the price breaks above the wedge’s upper trendline, it will confirm a strong upward momentum.
2. Key Support & Resistance Levels
Support Levels:
Major Support Zone (80,000 – 81,000):
This level has been tested twice, confirming buyer strength.
It serves as the foundation for the double bottom pattern.
Stop Loss Level (72,921):
If the price drops below this level, it would invalidate the bullish setup.
This level is strategically placed to manage risk and protect against potential downturns.
Resistance Levels:
First Resistance Zone (95,000 – 100,000):
This is a critical level, as the price has faced multiple rejections here.
A breakout above this zone would confirm a strong bullish trend continuation.
Take Profit Targets:
TP1 (108,481): The first take-profit target aligns with previous highs and is a logical point for partial profit booking.
TP2 (114,372): This is the second profit target, calculated based on Fibonacci extensions and historical price movements.
3. Trading Strategy & Execution Plan
A. Entry Strategy
To execute a successful trade, we need to wait for confirmation of the breakout.
Ideal Entry: After a strong breakout above 95,000 – 100,000, indicating bullish momentum.
Confirmation Factors:
Increased trading volume → Signals strong buying interest.
Candle close above resistance → Confirms breakout.
Retest of broken resistance as support → Strengthens bullish continuation.
B. Risk Management
Stop Loss Placement: Below 72,921, ensuring limited downside risk.
Risk-to-Reward Ratio: The trade setup aims for a 1:3 or better risk-to-reward ratio.
C. Potential Scenarios
✅ Bullish Breakout:
If BTC breaks and holds above 95,000 – 100,000, we can expect a rally toward 108,481 (TP1) and 114,372 (TP2).
❌ Bearish Rejection:
If BTC fails to break resistance, it could retest 80,000 or drop lower, invalidating the bullish setup.
4. Final Thoughts – What to Expect?
This BTC/USD 4-hour chart analysis provides a high-probability bullish trade setup, supported by:
✅ Double Bottom Formation → Strong Reversal Signal
✅ Rising Wedge Breakout Potential → Momentum Building
✅ Key Resistance Breakout Levels Identified
📌 Conclusion:
If Bitcoin breaks above 95,000 – 100,000, expect a major bullish move toward 108,481 and beyond. However, if resistance holds, we might see a retest of lower support levels. Risk management is essential for a successful trade execution. 🚀
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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.