๐ง Full BTC/USD 1H Chart Analysis โ Double Bottom Reversal + Breakout & Retest Setup
๐ช Market Context:
The BTC/USD 1-hour chart is showing a clear bullish reversal pattern after a sustained downtrend. Price action suggests that bearish momentum has weakened significantly and bulls are regaining control. The structure forms a Double Bottom, supported by horizontal support and resistance levels, and is further validated by a bullish breakout followed by a clean retest.
๐ Detailed Chart Breakdown:
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1. Double Bottom Reversal Pattern
Bottom 1 formed after an aggressive selloff, showing exhaustion in the downtrend. Price hit oversold levels and printed long lower wicks, signaling early buyer interest.
Retracement followed, but lacked strengthโindicating the bears were losing momentum.
Bottom 2 tested the same support zone without breaking it, establishing a higher low wick, which adds strength to the pattern and confirms bullish divergence.
Psychology: The double bottom reflects buyers stepping in aggressively at the same demand zone, while sellers fail to push lower, marking a shift in market sentiment.
๐ 2. Neckline Breakout and Retest
Price successfully broke above the neckline/resistance zone (~85,500 - 86,200).
After the breakout, price came back down to retest this previous resistance, which is now acting as supportโa textbook bullish continuation signal.
This behavior shows institutional-style accumulation where smart money breaks a level and retests to trap late sellers before the real move begins.
๐ Key Technical Levels:
Zone Value Range Role in Setup
Support 82,500 โ 83,800 Double Bottom demand zone (buy zone)
Resistance 85,500 โ 86,200 Neckline breakout zone (now turned support)
Take Profit 87,952 Measured move target from Double Bottom
Stop Loss 82,150 Below structure low (Bottom 2)
๐ง Pattern Psychology:
Before the Bottoms: Traders were panic-selling, evident from the sharp drop and heavy candles.
First Bounce: Some buyers entered but lacked convictionโprice retraced.
Second Bottom: Buyers re-entered with stronger volume, rejecting the same level again.
Breakout: Market sentiment flipped as confidence returned.
Retest: Bears tried to regain control but failedโbulls bought the dip aggressively.
This transition shows a shift from distribution to accumulation, a hallmark of reversal setups on lower timeframes.
๐น Entry & Risk Management Plan:
Strategy Component Description
Entry Zone $84,500 โ $85,000 (after retest confirmation)
Stop Loss (SL) $82,150 (beneath both bottoms and support zone)
Take Profit (TP) $87,952 (projected based on pattern height)
Risk/Reward Ratio Approx. 1:2.5 (favorable for swing or scalp)
Confidence Factors Breakout + retest, psychological pattern, clear R/S zones
๐ Momentum Indicators & Structure Confirmation:
Even without showing volume or oscillators, the candle structure and higher lows post-retest hint at a building bullish momentum.
If volume data were added, weโd likely see:
Rising volume on breakout.
Declining volume during pullback.
Spiking volume on retest confirmation.
These are hallmark traits of continuation after breakout.
๐ Professional Notes:
This is a low-risk, high-reward structure favored by institutional traders.
The double bottom pattern is strongest when combined with horizontal support and a clean retestโboth present in this setup.
The final target at $87,952 corresponds to recent swing highs, making it a technically valid take-profit level.
If price consolidates further near current levels, it may form a bullish flag, offering a secondary entry on breakout continuation.
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Final Thoughts:
This BTC/USD setup is a textbook example of a bullish reversal with structure, momentum, and confluence. Itโs ideal for intraday or short-term swing trades with manageable risk and excellent upside. If price sustains above $85K, it has strong potential to rally toward the 88K region.