BTC/USD Forming Bullish Falling Wedge – Potential Target📐 2. Technical Pattern – Falling Wedge
A falling wedge forms when the price consolidates between two converging downward-sloping trendlines. It suggests diminishing selling pressure and a likely reversal.
Key Characteristics in This Chart:
Upper Resistance Trendline: Formed by connecting the series of lower highs.
Lower Support Trendline: Formed by connecting the lower lows.
The price respects both boundaries, confirming wedge structure.
Volume generally decreases during the wedge (implied but not shown).
✅ Bullish Implication: Once price breaks above the upper resistance, it often triggers a sharp upward move due to the squeeze of supply and the build-up of demand.
🧱 3. Support and Resistance Zones
🔻 Resistance Zone:
Area: ~100,000 to ~108,000 USD
Marked as a wide horizontal band (beige-shaded area).
Previous price peaks and consolidations suggest this zone is strong supply.
Breakout above this zone could trigger momentum towards the higher target.
🔹 Support Zone:
Area: ~72,000 to ~75,000 USD
Historical reaction level where buyers previously stepped in.
Coincides with the lower wedge boundary and recent bounce points.
Repeated tests strengthen this as a reliable accumulation zone.
🎯 4. Trade Setup Strategy
💼 Entry Strategy:
Trigger: A confirmed breakout above the wedge’s upper trendline (black diagonal line).
Confirmation: A strong bullish daily close above the trendline, ideally with volume spike.
The current price (~77,130) is near the lower boundary—offering a potential early entry or low-risk setup with a tight stop.
📌 Stop-Loss Placement:
Level: 70,916 USD
Below the wedge’s lower support and beneath the broader support zone.
Ensures exit if the pattern fails or bears regain control.
🧭 Target Projection:
Target Price: 114,562 USD
Based on the height of the wedge projected from the breakout point, a standard wedge breakout measurement.
Aligns with historical highs and psychological resistance.
🧮 Risk-Reward Ratio: Assuming entry around 77,130:
Risk (Stop-Loss): ~6,200 points
Reward (Target): ~37,432 points
R:R Ratio ≈ 1:6 – Highly favorable
⚙️ 5. Market Psychology & Price Action Insight
The falling wedge pattern suggests exhaustion of sellers.
Buyers are defending the support zone aggressively—creating higher lows within the wedge.
Each bounce is slightly more aggressive, indicating growing bullish sentiment.
A breakout from the wedge could act as a catalyst for rapid price acceleration as sidelined bulls enter and shorts cover.
📊 6. Summary of the Setup
Component Detail
Pattern Falling Wedge (Bullish)
Timeframe 1-Day Chart
Entry Point Breakout above upper trendline
Stop Loss 70,916 USD
Target 114,562 USD
Support Zone 72,000–75,000 USD
Resistance Zone 100,000–108,000 USD
Risk/Reward Approx. 1:6
Bias Bullish
📌 Final Thoughts
This setup provides a technically sound opportunity with clear invalidation (stop loss) and a well-defined profit target. The risk-to-reward ratio is attractive, and the price structure suggests a bullish reversal is likely, pending a confirmed breakout.
