Hello everyone, here is my breakdown of the current Bitcoin setup.
Market Analysis
From a broader perspective, the price action for Bitcoin has been bearish since it was rejected from the major Resistance Zone 2 near 118900. This initiated a downtrend that has since been developing within the confines of a large downward wedge pattern, creating a sequence of lower highs and lower lows.
The most recent significant event was the breakdown below the key horizontal Resistance Zone 1 around the 112100 mark. After finding temporary support, the price is now in a corrective rally, heading back up towards the main resistance line of the wedge in a classic retest move.
My Scenario & Strategy
My scenario is based on the expectation that the dominant downtrend will continue. I’m anticipating that the price will complete this corrective bounce and touch the wedge’s resistance line. Upon reaching this area, I expect sellers to show strength, reject the price, and cause a reversal that initiates the next impulsive move downwards within the overall structure.
Therefore, the strategy is to watch for this rejection from the wedge’s resistance. The primary target for this move is 106500 points, which aligns perfectly with the lower support line of the wedge pattern.
That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.
