BTC Breakout from Falling Wedge – Targeting $111KBitcoin recently experienced a corrective phase following a strong uptrend that topped near $115,000. After facing rejection at this level, price action shifted into a downward structure, forming a falling wedge pattern, which is typically considered a bullish reversal signal.
🔷 Pattern Formation : Falling Wedge
The chart reveals a clearly defined falling wedge (marked by two converging descending trendlines).
Price action respected the wedge boundaries multiple times, confirming the pattern's validity.
The wedge started forming after the CHoCH (Change of Character), indicating a structural shift from bullish to bearish.
The pattern ended with a bullish breakout, suggesting the return of upward momentum.
🟩 Key Technical Zones :
Resistance Zone: $111,000 – $115,000
Previously tested multiple times; a major supply zone.
Support Zone: $74,000 – $75,000
This area held as support three times, forming a triple bottom, reinforcing its strength.
Breakout Point: ~ $80,000
Price broke above the descending resistance trendline of the wedge.
📌 Trade Setup Overview:
✅ Entry:
Ideal long entry after the breakout from the wedge, confirmed with bullish momentum and daily candle close above resistance.
🎯 Targets:
TP1: ~$90,000 — minor resistance area and psychological level.
TP2: ~$100,000 — significant level, aligns with previous structural highs.
Final Target: $111,755 — retest of the macro resistance zone from the previous peak.
🛡 Stop Loss (SL):
Placed below the strong support at $74,014, just outside the pattern structure.
This provides a favorable risk-to-reward ratio and protects against a false breakout.
📈 Structure and Price Flow:
The projection (marked with blue arrows and yellow circles) outlines a typical Elliott-style impulse:
Breakout
Minor pullback
Continuation to TP1 and TP2
Final wave targeting previous highs
🔎 Additional Insights:
Volume (not shown): A breakout from a wedge is typically confirmed by an increase in volume. Traders should validate that volume accompanies the breakout.
Risk Management: Conservative traders might consider scaling in after retest of the breakout trendline.
Macro Confluence: Breakout aligns with broader bullish sentiment in crypto markets, further supporting the setup.
📌 Conclusion:
This is a textbook falling wedge breakout pattern with a strong support base and clear bullish targets. The structure favors a long position with well-defined risk levels and multiple take-profit zones. The projected move to $111K+ remains valid as long as price holds above the $74K support region.
