📊 Bitcoin Breakout from Falling Wedge | Bullish Trend May Resume Toward $112K
Bitcoin (BTC/USD) is showing strong signs of a bullish continuation after breaking out from a classic Falling Wedge pattern on the daily timeframe. This breakout could mark a significant turning point in BTC’s price action, potentially pushing the price toward the next major resistance at $112,375.
🔹 What is the Falling Wedge Pattern?
The falling wedge is a bullish reversal pattern that forms after a downtrend. It is characterized by:
Lower highs and lower lows
Price action squeezing within converging trendlines
A breakout to the upside signals a trend reversal
In this chart, BTC formed a falling wedge over the past few months, consolidating after a strong bullish rally. This indicated weakening selling pressure, setting the stage for a potential bullish breakout.
🔹 Key Observations from the Chart:
✅ Support Area Held Firm
Bitcoin consistently found buying support around $74,216, with multiple rejections of lower prices. This level acted as a strong base during the wedge formation.
✅ Bullish Breakout Confirmed
In April, BTC broke out of the wedge with a strong bullish candle, signaling a shift in momentum. This breakout occurred near the $80,000 zone and was backed by increased volume, validating the move.
✅ Retest of Breakout Zone
After the breakout, BTC pulled back slightly to retest the previous resistance (now turned support). This is a healthy sign and often precedes the next leg up. The retest occurred around the $88,000–$90,000 range, which held firmly—confirming the breakout's strength.
🔹 Key Price Levels to Watch:
🟢 Support/Stop Loss: $74,216
This is the key invalidation point for the bullish setup. A close below this level would invalidate the wedge breakout.
🟡 Resistance Zone: $95,000–$108,000
BTC needs to break through this supply zone to unlock further upside.
🎯 Target: $112,375
This is the projected price target based on the wedge’s measured move and previous highs.
🔹 Trade Idea Summary:
Entry: After breakout confirmation or on retest (~
88K
–$90K)
Target: $112,375
Stop Loss: $74,216
This setup favors long positions with a positive risk-reward ratio, assuming Bitcoin maintains above the retested support area.
🔍 Final Thoughts:
Bitcoin’s recent price action is showing strong technical signals for continuation. The breakout from a falling wedge is one of the most reliable bullish setups in technical analysis. As long as BTC holds above the retest zone, bulls may regain control and push the price toward the $112K psychological and technical resistance.
However, traders should also remain cautious of broader market sentiment, macroeconomic news, and volume confirmation before entering.
