BTC/USD Trading Analysis – Double Bottom & Rising Wedge Breakout

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. 🚀