BTCUSDT Bullish Reversal from Key Support Zone — Long Trade Setup

Date: May 25, 2025

Symbol: BTC/USDT

Timeframe: 1H / 4H (adjust as needed)

Strategy: Support Reversal Swing Trade

Bias: Bullish

Setup Overview:

BTCUSDT is showing a strong bullish reversal signal after testing a critical support zone between 106,100 – 106,700 USDT. Price formed a potential double bottom or accumulation area, indicating buyer absorption and a likely momentum shift from bearish to bullish.

Key Observations:

• Multiple long-tailed wicks and rejection candles in the support zone reveal aggressive buying.

• The downtrend’s pattern of lower highs and lows is breaking, with price creating a higher low within the demand zone.

• Breaking the minor trendline resistance confirms bullish intent and a potential new upward leg.

Trade Details:

• Entry: 107,393 USDT (just above support after bullish confirmation candles)

• Stop-Loss: 105,814 USDT (below support to allow volatility without invalidating setup)

• Targets:

• TP1: 111,980 USDT (previous swing high)

• TP2: 112,337 USDT (Fibonacci extension and psychological resistance)

Risk-Reward:

• Risk: ~1,579 USDT

• Reward: ~4,944 USDT

• Risk-Reward Ratio: ~1:3.13 — an attractive setup for swing traders.

Psychological & Market Context:

This pattern suggests smart money accumulation after retail traders are shaken out during the downtrend. Institutions often accumulate at low-volume support zones before triggering reversals. The setup combines strong technical support, price action confirmation, and a clear stop-loss and target strategy — ideal for disciplined trading.

Technical Notes:

• Confirm the breakout with rising volume.

• Watch for bullish RSI or MACD divergence for added confidence.

• If price falls below 105,814, invalidate the trade and exit.

Disclaimer: This is educational content, not financial advice. Always conduct your own research and manage risk carefully.