Bitcoin has successfully broken out of a descending channel after a period of consolidation and correction. Following a strong uptrend earlier this week, price entered a tight range (highlighted in purple), before breaking below the trendline and moving into a falling channel.
Now, we've seen a bullish breakout from that channel—suggesting momentum is shifting back in favor of the bulls.
Key Observations:
Initial consolidation near the highs acted as a base.
Price broke below the rising trendline and entered a corrective phase.
A clean breakout from the descending channel signals renewed bullish strength.
Price is currently retesting the breakout zone, potentially setting up for the next leg higher.
Target Zone:
If this bullish momentum holds, the next target sits around 112,600 USDT. This would align with the height of the previous upward impulse.
Risk Zone:
A return below the 109,700 USDT support zone could invalidate this setup and suggest a deeper pullback toward 108,000 USDT.
Outlook:
This chart presents a classic breakout-retest-continuation scenario. As long as BTC remains above the breakout level, the bullish case remains intact. Ideal for traders watching for trend continuation after a flag pattern.
Always apply appropriate risk management and stay updated on price action.
Now, we've seen a bullish breakout from that channel—suggesting momentum is shifting back in favor of the bulls.
Key Observations:
Initial consolidation near the highs acted as a base.
Price broke below the rising trendline and entered a corrective phase.
A clean breakout from the descending channel signals renewed bullish strength.
Price is currently retesting the breakout zone, potentially setting up for the next leg higher.
Target Zone:
If this bullish momentum holds, the next target sits around 112,600 USDT. This would align with the height of the previous upward impulse.
Risk Zone:
A return below the 109,700 USDT support zone could invalidate this setup and suggest a deeper pullback toward 108,000 USDT.
Outlook:
This chart presents a classic breakout-retest-continuation scenario. As long as BTC remains above the breakout level, the bullish case remains intact. Ideal for traders watching for trend continuation after a flag pattern.
Always apply appropriate risk management and stay updated on price action.
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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.