BTC/USD Trade Idea: Bullish Flag Breakout – Momentum Continuation Toward 101,628
⚙️ Chart Details
Asset: Bitcoin / U.S. Dollar (BTC/USD)
Timeframe: 30-Minute
Exchange: BITSTAMP
Methodology: Price Action + Chart Patterns (Bullish Flag)
🔍 Technical Breakdown
🔹 1. Initial Bullish Impulse
The move begins with a strong vertical rally, forming the flagpole of the bullish flag.
This signifies intense buying momentum, often the precursor to continuation if market sentiment remains bullish.
🔹 2. Bullish Flag Formation
After the rally, BTC enters a consolidation phase, forming a downward-sloping channel or wedge—this is the flag.
The pattern is characterized by lower highs and lower lows, but with reduced volume and declining momentum, suggesting temporary profit-taking rather than a full reversal.
🔹 3. Breakout Confirmation
The breakout occurs once price breaks above the upper flag boundary, signaling that buyers have regained control.
This is confirmed with a strong bullish candle breaking above both the flag and the previous resistance level, now acting as support.
🔹 4. Retest of Support
The chart indicates a minor pullback toward the broken resistance (now support), a common occurrence post-breakout, which offers an optimal entry point for long positions.
📈 Trade Setup
🔵 Entry Point
Ideal entry occurs on confirmation of breakout, or on a retest of the flag’s upper trendline, providing a low-risk buying opportunity.
🎯 Take-Profit Targets
TP1 – 100,396
A psychologically significant round number.
Aligned with minor resistance and a potential hesitation zone for price.
Final TP – 101,628
This is calculated using the measured move technique, projecting the height of the flagpole from the breakout point.
Also aligns with the next resistance level on the higher timeframe structure.
🛑 Stop Loss – 97,468
Strategically placed below the flag support zone and recent swing low.
Offers room for natural price fluctuations while protecting from deeper pullbacks or false breakouts.
🧠 Trade Rationale & Confluence
✅ Bullish Flag Pattern: A proven continuation pattern in trending markets.
✅ Breakout with Volume Surge: Suggests genuine buying interest.
✅ S/R Flip: Previous resistance becomes support—classic technical confirmation.
✅ Measured Move Target: Matches with higher timeframe resistance—offering strong directional confidence.
✅ Risk-Reward: Favorable (approx. 1:2 or better depending on entry).
📌 Summary
The BTC/USD chart presents a textbook Bullish Flag Continuation Setup. The initial bullish impulse, followed by a structured flag consolidation and a clean breakout, provides a high-confidence opportunity for long entries. The projected move targets the 101,628 level, while the stop loss at 97,468 ensures disciplined risk control.
This trade idea suits momentum traders and breakout traders looking to ride the continuation of a bullish trend with solid technical backing.
⚙️ Chart Details
Asset: Bitcoin / U.S. Dollar (BTC/USD)
Timeframe: 30-Minute
Exchange: BITSTAMP
Methodology: Price Action + Chart Patterns (Bullish Flag)
🔍 Technical Breakdown
🔹 1. Initial Bullish Impulse
The move begins with a strong vertical rally, forming the flagpole of the bullish flag.
This signifies intense buying momentum, often the precursor to continuation if market sentiment remains bullish.
🔹 2. Bullish Flag Formation
After the rally, BTC enters a consolidation phase, forming a downward-sloping channel or wedge—this is the flag.
The pattern is characterized by lower highs and lower lows, but with reduced volume and declining momentum, suggesting temporary profit-taking rather than a full reversal.
🔹 3. Breakout Confirmation
The breakout occurs once price breaks above the upper flag boundary, signaling that buyers have regained control.
This is confirmed with a strong bullish candle breaking above both the flag and the previous resistance level, now acting as support.
🔹 4. Retest of Support
The chart indicates a minor pullback toward the broken resistance (now support), a common occurrence post-breakout, which offers an optimal entry point for long positions.
📈 Trade Setup
🔵 Entry Point
Ideal entry occurs on confirmation of breakout, or on a retest of the flag’s upper trendline, providing a low-risk buying opportunity.
🎯 Take-Profit Targets
TP1 – 100,396
A psychologically significant round number.
Aligned with minor resistance and a potential hesitation zone for price.
Final TP – 101,628
This is calculated using the measured move technique, projecting the height of the flagpole from the breakout point.
Also aligns with the next resistance level on the higher timeframe structure.
🛑 Stop Loss – 97,468
Strategically placed below the flag support zone and recent swing low.
Offers room for natural price fluctuations while protecting from deeper pullbacks or false breakouts.
🧠 Trade Rationale & Confluence
✅ Bullish Flag Pattern: A proven continuation pattern in trending markets.
✅ Breakout with Volume Surge: Suggests genuine buying interest.
✅ S/R Flip: Previous resistance becomes support—classic technical confirmation.
✅ Measured Move Target: Matches with higher timeframe resistance—offering strong directional confidence.
✅ Risk-Reward: Favorable (approx. 1:2 or better depending on entry).
📌 Summary
The BTC/USD chart presents a textbook Bullish Flag Continuation Setup. The initial bullish impulse, followed by a structured flag consolidation and a clean breakout, provides a high-confidence opportunity for long entries. The projected move targets the 101,628 level, while the stop loss at 97,468 ensures disciplined risk control.
This trade idea suits momentum traders and breakout traders looking to ride the continuation of a bullish trend with solid technical backing.
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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.