BTC/USD is testing a key support level after printing a higher high followed by consistent lower highs and descending price action. The structure resembles a falling wedge, often seen as a bullish reversal setup.
Higher high formation, then breakdown
Price compressing within falling wedge
Key support around $108,600–$108,800 holding multiple times
Volume tapering as price nears wedge apex – a potential breakout signal
📊 If this bullish reversal plays out, the initial measured move target is ~$109,800–$110,000, aligning with prior intraday resistance and the psychological round number zone.
🧠 My Thought Process:
This setup is not about chasing the dip, but reading price compression near support. The reaction at the $108,600 zone will be key. If BTC breaks out of the wedge on strong volume, that could trigger short-term bullish momentum. However, a breakdown below $108,600 would invalidate the setup and suggest further downside toward $108,000 or lower.
⚠️ Risk Zone:
I’ll reconsider this bullish bias if:
Price closes below $108,600 with volume
Bearish engulfing candle forms near support with follow-through
📢 Your Turn: Do you see this as a real base forming for reversal, or just a pause before further decline?