Chart Analysis:
Bitcoin has been consolidating within a well-defined rectangle pattern over the past several days, bounded by a support level around $95,000 and a resistance level near $97,000. This horizontal range represented a period of market indecision, where neither buyers nor sellers took clear control.
On May 2nd, BTC broke above the upper boundary of the rectangle, signaling a potential bullish continuation. Breakouts from consolidation zones, especially after a strong preceding trend, often lead to significant price moves due to the build-up of momentum and volume.
🧠 Technical Outlook:
Rectangle Pattern: Acts as a continuation formation in this context. The price bounced multiple times between horizontal support and resistance, creating a reliable breakout setup.
Support & Resistance:
Support Level: ~$95,000 (former resistance turned support)
Resistance Level: ~$97,000 (now flipped into support after the breakout)
Post-Breakout Retest: After breaking out, price has pulled back slightly, which appears to be a classic retest of the breakout zone — often a strong area to consider long entries.
Target Projection: Using the height of the rectangle added to the breakout point, the projected target is around $98,761. This aligns with prior price action zones and psychological levels.
Stop Loss Placement: Strategically placed just below the retest zone at $95,568, minimizing risk in case of a failed breakout.
✅ Trade Plan Summary:
Parameter Value
Entry ~$96,100
Stop Loss $95,568
Target $98,761
Risk/Reward ~1:4 ratio (approximate)
🔔 Notes for Traders:
Ensure volume confirmation on the breakout to validate strength.
Monitor for a higher low above $95,500 to confirm retest support.
If price re-enters the rectangle zone, this setup becomes invalid and would require reassessment.
Bitcoin has been consolidating within a well-defined rectangle pattern over the past several days, bounded by a support level around $95,000 and a resistance level near $97,000. This horizontal range represented a period of market indecision, where neither buyers nor sellers took clear control.
On May 2nd, BTC broke above the upper boundary of the rectangle, signaling a potential bullish continuation. Breakouts from consolidation zones, especially after a strong preceding trend, often lead to significant price moves due to the build-up of momentum and volume.
🧠 Technical Outlook:
Rectangle Pattern: Acts as a continuation formation in this context. The price bounced multiple times between horizontal support and resistance, creating a reliable breakout setup.
Support & Resistance:
Support Level: ~$95,000 (former resistance turned support)
Resistance Level: ~$97,000 (now flipped into support after the breakout)
Post-Breakout Retest: After breaking out, price has pulled back slightly, which appears to be a classic retest of the breakout zone — often a strong area to consider long entries.
Target Projection: Using the height of the rectangle added to the breakout point, the projected target is around $98,761. This aligns with prior price action zones and psychological levels.
Stop Loss Placement: Strategically placed just below the retest zone at $95,568, minimizing risk in case of a failed breakout.
✅ Trade Plan Summary:
Parameter Value
Entry ~$96,100
Stop Loss $95,568
Target $98,761
Risk/Reward ~1:4 ratio (approximate)
🔔 Notes for Traders:
Ensure volume confirmation on the breakout to validate strength.
Monitor for a higher low above $95,500 to confirm retest support.
If price re-enters the rectangle zone, this setup becomes invalid and would require reassessment.
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.
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.