Bitcoin
Long

Bullish Breakout from Falling Wedge | Upside Potential Ahead!

168
Market Overview:
The Bitcoin (BTC/USD) 4-hour chart is displaying a Falling Wedge pattern, a well-known bullish reversal structure. This indicates that the downtrend is weakening, and a potential breakout could lead to a strong upside move.

🔹 Key Technical Analysis
1️⃣ Falling Wedge Formation & Breakout
Bitcoin has been trading inside a falling wedge, marked by lower highs and lower lows, signaling a contraction in volatility.

A breakout above the upper trendline of the wedge is forming, suggesting a bullish reversal and the start of an uptrend.

Falling wedges typically lead to a rally equal to the height of the pattern, giving a measured move target of $114,334.

2️⃣ Price Action & Confirmation Levels
A clean breakout above $87,000 would confirm bullish momentum.

If price successfully retests the wedge’s upper boundary and holds support, further bullish continuation is expected.

The psychological level of $100,000 could act as an interim resistance before the final target is reached.

3️⃣ Upside Target & Resistance Zones
The measured move suggests a potential rally towards $114,334, aligning with previous resistance zones.

This target represents a 30.55% gain from the breakout level.

Traders should watch for pullbacks and retests as part of the breakout confirmation.

📈 Trading Plan - Long Setup
🔹 Entry: Look for a confirmed breakout above $87,000, or a retest of support.
🔹 Stop Loss: Below $84,000, protecting against false breakouts.
🔹 Take Profit: $100,000 - $114,334 (previous resistance & measured move target).
🔹 Risk-Reward Ratio: Strong bullish setup with favorable upside potential.

🛑 Risk Factors to Consider

⚠️ A failed breakout and a drop below $83,000 would invalidate the bullish setup.
⚠️ External factors such as macroeconomic events, regulatory news, and BTC ETF developments could influence volatility.

Final Thought
The breakout from the falling wedge signals a potential bullish continuation for Bitcoin, with targets set around $114,334. Traders should watch for confirmation above $87,000 and manage risk accordingly.

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