Bitcoin is currently consolidating within a key decision zone after forming a textbook Double Bottom pattern on the 4H timeframe. Technical analysis across multiple timeframes reveals a compelling bullish setup with clearly defined entry, stop, and target levels.
Market Structure Analysis
The current price ($105.2K) sits precisely at a critical inflection point where short-term bearish momentum meets longer-term bullish structure. The 4H chart shows a Double Bottom formation (95% reliability) with a neckline at $104.9K, while the 1H timeframe confirms a bullish moving average alignment (SMA20 > SMA50 > SMA100).
What makes this setup particularly attractive is the converging technical evidence:
Price is testing the lower boundary of the ascending channel (green lines)
RSI is neutral at 51.07, showing neither overbought nor oversold conditions
The Fibonacci fan projection suggests continuation toward $110.1K
Volume patterns on higher timeframes confirm accumulation rather than distribution
Entry Strategy
Conservative Entry: $104.8K (lower channel support)
Aggressive Entry: Current price $105.2K with partial position
This staggered approach provides optimal risk management, allowing positions to be built at technically significant levels. The conservative entry aligns perfectly with the channel support and offers a superior risk-reward profile.
Risk Management
Stop Loss: $101.5K (below major support)
A clear invalidation below $100.7K would signal a potential trend change.
Target Zones
Target 1: $105.8K (initial resistance, +1.0%)
Target 2: $107.1K (previous high, +2.2%)
Target 3: $108.8K (Fibonacci 127.2% extension, +3.8%)
Target 4: $110.1K (Fibonacci fan projected target, +5.1%)
I recommend scaling out of positions at each target level: 30% at Target 1, 30% at Target 2, 25% at Target 3, and the remaining 15% at Target 4.
Market Context
This setup gains additional strength from fundamental factors. The U.S. Strategic Bitcoin Reserve establishment provides long-term support, while recent Bitcoin ETF inflows ($1.8B for week ending May 3) demonstrate growing institutional conviction. The strengthening "digital gold" correlation (now 0.70 with gold vs. 0.53 with Nasdaq) suggests Bitcoin is increasingly being viewed as a store of value during uncertain economic conditions.
The ideal scenario would be a brief retest of the $104.8K support before a decisive move toward the target zones. With proper position sizing and disciplined exit strategy, this setup offers an attractive opportunity as Bitcoin consolidates near its all-time highs.
Market Structure Analysis
The current price ($105.2K) sits precisely at a critical inflection point where short-term bearish momentum meets longer-term bullish structure. The 4H chart shows a Double Bottom formation (95% reliability) with a neckline at $104.9K, while the 1H timeframe confirms a bullish moving average alignment (SMA20 > SMA50 > SMA100).
What makes this setup particularly attractive is the converging technical evidence:
Price is testing the lower boundary of the ascending channel (green lines)
RSI is neutral at 51.07, showing neither overbought nor oversold conditions
The Fibonacci fan projection suggests continuation toward $110.1K
Volume patterns on higher timeframes confirm accumulation rather than distribution
Entry Strategy
Conservative Entry: $104.8K (lower channel support)
Aggressive Entry: Current price $105.2K with partial position
This staggered approach provides optimal risk management, allowing positions to be built at technically significant levels. The conservative entry aligns perfectly with the channel support and offers a superior risk-reward profile.
Risk Management
Stop Loss: $101.5K (below major support)
A clear invalidation below $100.7K would signal a potential trend change.
Target Zones
Target 1: $105.8K (initial resistance, +1.0%)
Target 2: $107.1K (previous high, +2.2%)
Target 3: $108.8K (Fibonacci 127.2% extension, +3.8%)
Target 4: $110.1K (Fibonacci fan projected target, +5.1%)
I recommend scaling out of positions at each target level: 30% at Target 1, 30% at Target 2, 25% at Target 3, and the remaining 15% at Target 4.
Market Context
This setup gains additional strength from fundamental factors. The U.S. Strategic Bitcoin Reserve establishment provides long-term support, while recent Bitcoin ETF inflows ($1.8B for week ending May 3) demonstrate growing institutional conviction. The strengthening "digital gold" correlation (now 0.70 with gold vs. 0.53 with Nasdaq) suggests Bitcoin is increasingly being viewed as a store of value during uncertain economic conditions.
The ideal scenario would be a brief retest of the $104.8K support before a decisive move toward the target zones. With proper position sizing and disciplined exit strategy, this setup offers an attractive opportunity as Bitcoin consolidates near its all-time highs.
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.
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.