BTC/USD Technical Analysis – Falling Wedge Breakout and Retest Setup
Timeframe: 45-Minute
Exchange: Bitstamp
Instrument: Bitcoin / U.S. Dollar (BTC/USD)
Date: May 7, 2025
🔍 Chart Pattern Overview
Pattern Identified: Falling Wedge (Bullish Reversal)
A falling wedge pattern formed over several days, characterized by converging downward sloping trendlines, with lower highs and lower lows.
The support line (bottom of wedge) held multiple times, indicating strong buying interest and bullish divergence.
The resistance line (top of wedge) acted as a ceiling that price eventually broke through.
The falling wedge is typically a bullish reversal pattern, especially when it appears after a sustained downtrend. The breakout above the upper trendline signals a shift in momentum from sellers to buyers.
📈 Breakout and Confirmation
Breakout occurred with strong bullish momentum, indicating institutional buying or short covering.
Volume confirmation (not shown on this chart but essential in real-world analysis) would further validate the breakout.
Price rallied aggressively from the support zone near $93,000–$94,000, breaking through the previous swing high and key resistance area around $97,600.
⚙️ Key Technical Levels
Support Zone: ~$93,600–$94,759
→ Previously tested multiple times and formed the base of the falling wedge.
Resistance Zone (Blue Box): ~$97,600–$98,200
→ Prior swing highs where price reacted negatively before. Currently retesting after the breakout.
Take Profit (TP): $98,173
→ First reaction level post-breakout and below the next major resistance. Ideal for partial profits.
Final Target: $98,947
→ Based on the measured move from wedge height and prior resistance from early April.
Stop Loss (SL): $94,759
→ Placed just below the breakout point and support level to limit downside risk.
📌 Trade Setup
Entry: After retest of resistance-turned-support (~$97,600)
Stop Loss: $94,759 (below key support)
Take Profit 1 (TP1): $98,173
Final Target: $98,947
Risk-Reward Ratio: Favorable (approximately 1:2 or higher depending on entry)
📊 Technical Summary
Trend Bias: Short-term bullish
Pattern Bias: Reversal and continuation pattern completed (falling wedge)
Market Behavior: Strong bullish breakout followed by a potential healthy retest
✅ Conclusion
This BTC/USD chart shows a textbook falling wedge breakout, supported by strong upside momentum and a clean structure. The breakout, combined with the break and retest of key resistance, offers a high-probability long setup with well-defined risk management. Traders should monitor the retest zone for bullish confirmation before entering, targeting near $98,947 for full exit.
Timeframe: 45-Minute
Exchange: Bitstamp
Instrument: Bitcoin / U.S. Dollar (BTC/USD)
Date: May 7, 2025
🔍 Chart Pattern Overview
Pattern Identified: Falling Wedge (Bullish Reversal)
A falling wedge pattern formed over several days, characterized by converging downward sloping trendlines, with lower highs and lower lows.
The support line (bottom of wedge) held multiple times, indicating strong buying interest and bullish divergence.
The resistance line (top of wedge) acted as a ceiling that price eventually broke through.
The falling wedge is typically a bullish reversal pattern, especially when it appears after a sustained downtrend. The breakout above the upper trendline signals a shift in momentum from sellers to buyers.
📈 Breakout and Confirmation
Breakout occurred with strong bullish momentum, indicating institutional buying or short covering.
Volume confirmation (not shown on this chart but essential in real-world analysis) would further validate the breakout.
Price rallied aggressively from the support zone near $93,000–$94,000, breaking through the previous swing high and key resistance area around $97,600.
⚙️ Key Technical Levels
Support Zone: ~$93,600–$94,759
→ Previously tested multiple times and formed the base of the falling wedge.
Resistance Zone (Blue Box): ~$97,600–$98,200
→ Prior swing highs where price reacted negatively before. Currently retesting after the breakout.
Take Profit (TP): $98,173
→ First reaction level post-breakout and below the next major resistance. Ideal for partial profits.
Final Target: $98,947
→ Based on the measured move from wedge height and prior resistance from early April.
Stop Loss (SL): $94,759
→ Placed just below the breakout point and support level to limit downside risk.
📌 Trade Setup
Entry: After retest of resistance-turned-support (~$97,600)
Stop Loss: $94,759 (below key support)
Take Profit 1 (TP1): $98,173
Final Target: $98,947
Risk-Reward Ratio: Favorable (approximately 1:2 or higher depending on entry)
📊 Technical Summary
Trend Bias: Short-term bullish
Pattern Bias: Reversal and continuation pattern completed (falling wedge)
Market Behavior: Strong bullish breakout followed by a potential healthy retest
✅ Conclusion
This BTC/USD chart shows a textbook falling wedge breakout, supported by strong upside momentum and a clean structure. The breakout, combined with the break and retest of key resistance, offers a high-probability long setup with well-defined risk management. Traders should monitor the retest zone for bullish confirmation before entering, targeting near $98,947 for full exit.
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Penafian
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.