Hello everyone, here is my breakdown of the current Bitcoin setup.
Market Analysis
From a broader perspective, the price action for Bitcoin has been highly volatile, transitioning from a Downward Channel into the current Broadening wedge. This pattern is defined by higher highs and lower lows, indicating an ongoing battle between buyers and sellers with expanding volatility and no clear winner yet.
After failing to break the major Resistance at the 115800 level, the price has rotated down across the entire pattern. Currently, it is trading at a critical location, testing the ascending support line of the wedge, just above the major horizontal Support zone which starts at the 110000 level.
My Scenario & Strategy
My scenario is built around the idea of a potential ‘fake breakdown’ or a liquidity hunt below the wedge’s trendline. I believe the market may make one final push down to test the major horizontal Support at the 110000 level. The key signal I’m watching for is a swift reversal after this potential dip.
Therefore, the strategy is to watch for this reversal. A successful reclaim of the wedge would validate the long scenario. The primary target for the subsequent rally is the 115800 Resistance, which represents a full rotation back to the top of the pattern.
That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.
