BTCUSD - Bullish Breakout from Falling Wedge Pattern | Target

Bitcoin has broken out of a Falling Wedge Pattern on the daily timeframe, signaling a bullish reversal that aligns with the broader market sentiment. Let’s examine this setup in detail, from pattern recognition to key support/resistance levels and trade planning.

🧠 Pattern Analysis – Falling Wedge Formation
The chart displays a textbook Falling Wedge, which is a bullish chart pattern that typically forms after a downtrend. It’s characterized by converging trendlines sloping downward, showing a slowdown in bearish momentum and a potential reversal point.

Formation Period: This wedge developed over a multi-week period (Feb–April 2025).

Structure: Each swing high and swing low forms lower highs and lower lows inside the wedge.

Breakout Confirmation: Price has decisively broken above the upper trendline of the wedge, validating a potential bullish continuation.

👉 Falling Wedge patterns are often seen near the end of a corrective move and suggest accumulation before a rally.

🔎 Key Technical Zones
🔸 Resistance Zone (~$103K–$105K)
This area has historically acted as a strong resistance zone.

Price is currently consolidating just below this region, indicating a possible breakout retest or a temporary pause before the next leg up.

🔸 Trendline Support
A new rising trendline has emerged post-breakout, acting as dynamic support.

Price has respected this trendline multiple times, forming higher highs and higher lows — a strong bullish signal.

🔸 SR Interchange Zone (~92K–$94K)
Previously acted as resistance; now flipped to support.

This makes it a critical level where bulls may defend positions, and a good place for a stop-loss.

🔸 Support Zone (~$75K–$78K)
Major historical support area where the wedge bottom formed.

Buyers stepped in aggressively in this zone during the final leg of the wedge.

🎯 Trade Plan
This setup offers a clearly defined risk-reward profile based on breakout trading principles.

📌 Entry Idea:
Current consolidation near resistance offers two entry strategies:

Aggressive Entry: Near current price, anticipating breakout continuation.

Conservative Entry: On a confirmed breakout above $105K or a pullback to trendline support around 98K–$100K.

✅ Target: $112,116
Measured by projecting the height of the wedge from the breakout point.

Also aligns with a previous key structural high, adding confluence to the target.

⛔ Stop Loss: $93,294
Strategically placed just below the SR interchange zone and rising trendline.

Protects against potential fakeouts or trendline breaks.

📉 Risk Management
Risk/Reward Ratio: ~2:1 or higher depending on entry point.

Always use proper position sizing.

Be prepared to cut the trade if price closes below trendline and SR zone on high volume.

🔮 Outlook and Strategy
This breakout suggests Bitcoin may be entering a renewed bullish phase. If macro conditions remain favorable and price sustains above key support zones, we could see continuation toward the $112K region.

However, it’s important to monitor:

Volume: Watch for rising volume on any breakout above the resistance zone.

Market Sentiment: External factors (e.g., news, ETF flows, regulatory updates) may influence the move.

Trendline behavior: A break and close below the rising support line may invalidate the setup.

💬 Final Thoughts
This is a technically clean setup combining a bullish pattern breakout, supportive structure (trendline & SR zones), and a logical target based on classical charting. If Bitcoin maintains current momentum, traders may see significant upside in the coming weeks.