As of the current 1-hour timeframe, Bitcoin (BTC) is exhibiting early signs of a potential bullish reversal after a sustained downtrend.
Key Observations:
Price Structure:
A clear downtrend was established with a series of Lower Highs (LH) and Lower Lows (LL) from the recent Higher High (HH).
The price action formed a bullish reversal pattern, possibly a Double Bottom or Inverted Head and Shoulders, near the recent LL around $93,300.
Break of Trendline:
The downward trendline connecting the recent highs has been broken, indicating a shift in momentum from bearish to bullish.
RSI Analysis:
The Relative Strength Index (RSI) has shown a bullish divergence. While the price made lower lows, RSI made higher lows, signaling a weakening of bearish momentum.
RSI currently stands near 46.88, moving upward, which supports a potential move toward the overbought zone.
Entry and Risk Levels:
Buy Stop: 94,944.95 USDT
Stop Loss: 93,279.56 USDT (just below recent support and second LL)
This setup implies a calculated long entry only if price confirms bullish continuation by breaking above the Buy Stop level.
Target Levels:
TP1: 96,526 USDT – First resistance level aligned with previous structure zone.
TP2: 98,119 USDT – Second major target near the previous swing high zone.
Conclusion:
A break above the $94,944 resistance would confirm a bullish reversal with potential targets at $96,526 and $98,119. However, failure to sustain above $94,000 or a breakdown below $93,279 would invalidate the bullish bias. Traders should monitor the RSI for confirmation and use proper risk management.
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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.
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.