📈 Bitcoin (BTC/USD) – Double Bottom Reversal with Rising Wedge Breakout | Bullish Continuation Setup
“Buy when there's confirmation, hold with structure, and exit with purpose.”
🧠 Market Sentiment & Context
Bitcoin has recently undergone a significant corrective phase, followed by consolidation and now showing early signs of bullish reversal. The 3-hour timeframe displays key price action elements that suggest market strength is building, and buyers are regaining control. Let’s explore the technical story unfolding:
📊 Technical Breakdown
🔵 1. Double Bottom Reversal Pattern
Structure:
This textbook double bottom pattern is formed after a clear downtrend, with Bottom 1 and Bottom 2 printed at nearly equal price levels (~$78,800), indicating strong demand at that support.
Support Zone:
A clear horizontal support level was tested twice, showing rejection wicks and bullish follow-through. This is a strong signal of buyer presence and price defense.
Neckline Break:
The neckline at $83,500–$84,000, which previously acted as resistance, has now been broken, confirming a bullish reversal pattern.
Psychology:
The double bottom reflects a shift from distribution to accumulation. Traders who previously shorted are being stopped out, while fresh long entries drive upward momentum.
🔺 2. Rising Wedge (Continuation within Trend)
Formation:
After the neckline break, BTC/USD consolidated in a rising wedge, a normally bearish structure, but here it acted as a continuation pattern.
Breakout & Retest:
Price broke out above the wedge, indicating strong bullish pressure. It's now pulling back to retest the wedge breakout zone, which offers a prime entry zone for trend traders.
Volume Implication (if measured):
Typically, a breakout accompanied by increased volume adds conviction to the move. While this chart doesn't show volume, the price structure strongly supports the momentum thesis.
📏 3. Strategic Trade Plan
✅ Long Setup
Entry Zone:
Around the current price pullback ($83,500 – $84,000), watching for bullish price action confirmation (e.g., bullish engulfing candle, pin bar, or inside bar breakout).
Take Profit (TP):
🎯 Target at $87,768 – $87,800
This level represents the measured move projection from the double bottom structure and the previous major resistance zone.
Stop Loss (SL):
🚫 Placed at $79,441, which is just beneath the structural support of the second bottom. A break below this zone would invalidate the bullish thesis.
Risk-to-Reward Ratio:
Approximately 3.5 to 1—a favorable setup for swing traders and intra-week positions.
🧭 4. Key Zones Summary
Zone Level Range Purpose
Support $78,500 – $79,000 Double Bottom Base
Entry Zone $83,000 – $84,000 Wedge Retest / Bullish Break
Target $87,768 – $87,800 Measured Move / Resistance
Stop Loss $79,441 Pattern Invalidation
📌 Confluence Factors Supporting the Bullish Setup
✅ Double bottom reversal at major support
✅ Neckline breakout followed by rising wedge
✅ Retest of wedge offers low-risk entry
✅ Clean invalidation level below structure
✅ Upside potential aligns with previous highs
⚠️ Risk Notes
As always, risk management is key. Use proper position sizing, set alerts near key zones, and do not trade without confirmation. Bitcoin is volatile, and liquidity traps are common.
📢 Conclusion
This BTC/USD setup presents a high-probability long opportunity based on classical technical analysis principles. The combination of a reversal pattern, bullish continuation breakout, and measured move projection makes this an ideal candidate for a structured trade.
Bias: 🔵 Bullish (above $83,000)
Invalidation: 🔴 Break and close below $79,400
Trend Structure: Reversal and continuation aligned
Trade Type: Swing / Short-term Position
“Buy when there's confirmation, hold with structure, and exit with purpose.”
🧠 Market Sentiment & Context
Bitcoin has recently undergone a significant corrective phase, followed by consolidation and now showing early signs of bullish reversal. The 3-hour timeframe displays key price action elements that suggest market strength is building, and buyers are regaining control. Let’s explore the technical story unfolding:
📊 Technical Breakdown
🔵 1. Double Bottom Reversal Pattern
Structure:
This textbook double bottom pattern is formed after a clear downtrend, with Bottom 1 and Bottom 2 printed at nearly equal price levels (~$78,800), indicating strong demand at that support.
Support Zone:
A clear horizontal support level was tested twice, showing rejection wicks and bullish follow-through. This is a strong signal of buyer presence and price defense.
Neckline Break:
The neckline at $83,500–$84,000, which previously acted as resistance, has now been broken, confirming a bullish reversal pattern.
Psychology:
The double bottom reflects a shift from distribution to accumulation. Traders who previously shorted are being stopped out, while fresh long entries drive upward momentum.
🔺 2. Rising Wedge (Continuation within Trend)
Formation:
After the neckline break, BTC/USD consolidated in a rising wedge, a normally bearish structure, but here it acted as a continuation pattern.
Breakout & Retest:
Price broke out above the wedge, indicating strong bullish pressure. It's now pulling back to retest the wedge breakout zone, which offers a prime entry zone for trend traders.
Volume Implication (if measured):
Typically, a breakout accompanied by increased volume adds conviction to the move. While this chart doesn't show volume, the price structure strongly supports the momentum thesis.
📏 3. Strategic Trade Plan
✅ Long Setup
Entry Zone:
Around the current price pullback ($83,500 – $84,000), watching for bullish price action confirmation (e.g., bullish engulfing candle, pin bar, or inside bar breakout).
Take Profit (TP):
🎯 Target at $87,768 – $87,800
This level represents the measured move projection from the double bottom structure and the previous major resistance zone.
Stop Loss (SL):
🚫 Placed at $79,441, which is just beneath the structural support of the second bottom. A break below this zone would invalidate the bullish thesis.
Risk-to-Reward Ratio:
Approximately 3.5 to 1—a favorable setup for swing traders and intra-week positions.
🧭 4. Key Zones Summary
Zone Level Range Purpose
Support $78,500 – $79,000 Double Bottom Base
Entry Zone $83,000 – $84,000 Wedge Retest / Bullish Break
Target $87,768 – $87,800 Measured Move / Resistance
Stop Loss $79,441 Pattern Invalidation
📌 Confluence Factors Supporting the Bullish Setup
✅ Double bottom reversal at major support
✅ Neckline breakout followed by rising wedge
✅ Retest of wedge offers low-risk entry
✅ Clean invalidation level below structure
✅ Upside potential aligns with previous highs
⚠️ Risk Notes
As always, risk management is key. Use proper position sizing, set alerts near key zones, and do not trade without confirmation. Bitcoin is volatile, and liquidity traps are common.
📢 Conclusion
This BTC/USD setup presents a high-probability long opportunity based on classical technical analysis principles. The combination of a reversal pattern, bullish continuation breakout, and measured move projection makes this an ideal candidate for a structured trade.
Bias: 🔵 Bullish (above $83,000)
Invalidation: 🔴 Break and close below $79,400
Trend Structure: Reversal and continuation aligned
Trade Type: Swing / Short-term Position
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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.
Related publications
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.