Bitcoin broke a falling wedge after long consolidation and is now holding above a major support level near $96K
The Ichimoku Cloud flipped to support as price moved above it and signaled a change in short term trend
A retest of the $96K level may decide if the current move continues or if a pullback happens first
Bitcoin has broken out of a falling wedge pattern and is currently trading near a major resistance zone around $96,300. The breakout has followed a strong upward move, with Bitcoin now positioned above a significant horizontal support and resistance level. A retest of this level is expected in the near term to confirm further direction.
Source: X
On May 3, 2025, technical analysis shared by The Crypto Express indicated that Bitcoin completed a breakout from a long-term falling wedge. The move was accompanied by bullish momentum, pushing the price above the $96,000 mark. This bullish development places BTC in a critical zone where traders typically anticipate a test of support or resistance before a continuation or reversal.
The current price action shows BTC/USD trading at $96,321.99, down -0.58% on the day. The horizontal resistance near $96,000 previously acted as both support and resistance multiple times, giving this level substantial technical relevance. Analysts expect this zone to be revisited soon to test its strength as new support.
Ichimoku Cloud Supports Breakout
The Ichimoku Cloud, a widely used trend-following indicator, is now acting as support on the daily chart. The price has moved decisively above the cloud, indicating strengthening bullish sentiment. In past cycles, such a move has often signaled the beginning of a sustained upward trend.
The green cloud area appears below the price structure, showing that the cloud is holding as support rather than resistance. This cloud breakout is being closely watched by analysts who interpret it as a sign of potential continuation. Historical behavior suggests that once the price remains above the cloud for multiple sessions, upward pressure may increase.
The breakout from the wedge and cloud confirmation align to suggest a shift in sentiment. Traders are now monitoring this structure for potential entry points, particularly if a retest of $96,000 holds. Should this level provide solid support, analysts may anticipate a renewed push toward higher levels.
Is This Breakout the Start of a Larger Trend?
Can this breakout be the foundation of Bitcoin’s next major trend or is it a temporary relief within a broader range? Bitcoin had traded within the falling wedge for months before breaking out. This consolidation pattern typically leads to a bullish reversal when price breaks above the descending trendline. The recent movement fits this classic structure.
The volume profile during the breakout has not been detailed in the post, but visual analysis suggests price strength has been met with steady follow-through. This has caught the attention of traders and analysts alike, with over 4,200 views and 59 likes recorded on the post. The chart depicts clean resistance zones and clear breakout validation.
The Crypto Express noted the importance of watching price action closely. Any failure to hold current levels could place pressure on bullish projections. A successful retest and bounce from the $96,000 level would likely confirm the breakout and open up room for the next upward move.
Support and Resistance Levels Shape Next Steps
The resistance zone just under $100,000 may now act as the primary target for bullish traders. The upper boundary of the wedge previously capped upward price movement. With that boundary broken, focus shifts to key psychological and technical areas like $99,000 and $100,000.
In addition to horizontal resistance, trendline support from the wedge pattern now creates a rising foundation beneath price. This could become an important level to watch during any correction. The wider wedge pattern spans back to early 2025, making this breakout technically significant.
