The Key Support and Resistance After Bitcoin's Breakout Formation and the Decisive Significance of 118855 Resistance

Effectiveness of Core Breakout Formation and Pullback Confirmation

The 4-hour box and wedge have both broken out, and after the breakout, the pullback confirming support at the upper boundary of the box and wedge has pushed the price up to 117600 USD. Although it has not yet stabilized, the bullish momentum has been validated. The current focus is: can it stabilize at 117000 USD—if stable, it will attack the key resistance at 118855 USD (this level is both the starting point of the previous decline and a necessary pass to challenge 120000 USD), a breakthrough opens new space, otherwise, a pullback and accumulation will be needed.

Key Point Trading Strategy

• Long Conditions:

1. Volume breakout at 116996 USD (hourly closing price stabilizes) → chase long on the right side, stop loss on breakout;

2. False breakout at 115550 USD and recover → try long with a light position, stop loss at the false breakout low or 114773 USD, if not recovered, give up;

3. Stabilize at 117139 USD → increase long position, target 117878 → 118869 USD, if this level stabilizes, the rise will continue;

4. Conservative traders can wait for a long position at 114220 USD, stop loss if it breaks 113337 USD (deep pullback for low absorption, needs extreme market conditions).

• Short Conditions:

1. Volume breakout below 116724 USD → chase short on the right side, if the pullback cannot recover, stop loss, must combine volume judgment;

2. At 118869 USD, a 2B false breakout occurs → try short with a light position, stop loss if it stabilizes above 119431 USD;

3. 4-hour level breaks 116071 USD → increase short position, target 115065 → 114059 USD, if this level is lost, the pullback is confirmed.

The Bull-Bear Divide and Trading Discipline

• Upper Pressure Ladder: 117139 → 117600 → 118855 USD, among which 118855 USD is the key take-profit level for long positions—upon reaching this level, it is recommended to take all profits, whether to break through or not needs to be assessed while walking, do not blindly gamble;

• Lower Support Baseline: 116079 → 115302 → 114259 USD, the 4-hour level of 116071 USD is a pullback warning line, breaking below confirms a short-term pullback, and long position risks should be avoided.

Summary: The short-term strength of Bitcoin depends on whether it can stabilize at 117000 USD; the core operation: follow up on long positions relying on the breakout at 116996 USD, closely monitor the resistance at 118855 USD and the support at 116071 USD, the offense and defense within this range will determine the direction of the next phase, do not cling to battles, do not blindly chase, prioritize discipline.