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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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.