BTCUSD | Rising Wedge Breakdown – Bearish SetupChart Overview:
This chart represents Bitcoin (BTC/USD) on the 1-hour timeframe and showcases a Rising Wedge pattern. The price action has reached a key resistance level, and a potential breakdown scenario is unfolding.
1️⃣ Pattern Identification: Rising Wedge Formation
A Rising Wedge is a bearish reversal pattern that forms when price moves within two converging upward-sloping trendlines. The narrowing price range indicates a weakening trend, and a breakdown usually leads to a significant price drop.
Upper Trendline (Resistance): Marked in blue, this trendline connects the higher highs.
Lower Trendline (Support): Also in blue, connecting the higher lows.
Breakdown Confirmation: The price has already moved below the wedge support, confirming the bearish bias.
2️⃣ Key Price Levels & Zones
🔹 Resistance Zone (Blue Box)
This strong resistance level has repeatedly rejected the price.
The final rejection led to a breakout failure and potential trend reversal.
🔹 Support Zone (Blue Box)
A strong demand zone, but a breakdown below it triggers a bearish trend.
This level is now acting as potential resistance after the breakdown.
🔹 ATH (All-Time High) – $87,566
This marks the highest price level reached in the given timeframe.
3️⃣ Market Structure Breakdown
🔻 Bearish Momentum & Breakdown
After touching the resistance, BTC failed to sustain upward movement.
A breakout of the wedge's lower trendline confirms a trend reversal.
Price action suggests a lower-high, lower-low structure, indicating a bearish market shift.
📉 Expected Price Movement (Wave Structure)
The breakout retest could result in a small pullback to previous support (now resistance).
After confirmation, price is likely to continue downward in a wave-like structure.
Fibonacci levels or key support zones will act as profit-taking targets.
4️⃣ Trade Setup & Targets
🔻 Short Setup (Bearish Trade Idea)
Entry: On a successful retest of the broken support zone.
Stop-Loss (SL): Above the previous resistance zone for risk management.
Take Profit (TP) Targets:
TP 1: $81,638
TP 2: $77,897
Final Target: $74,990
5️⃣ Summary & Conclusion
📌 BTC/USD has broken out of a Rising Wedge pattern, confirming a bearish trend.
📌 A pullback and retest may occur before further downside continuation.
📌 The chart suggests a short opportunity, targeting lower support zones for potential profit-taking.
📌 Traders should manage risk with a well-placed stop-loss above key resistance.
This setup aligns with technical analysis principles, confirming a high-probability short trade for BTC. 🚀
