#BTC The chart shows a rising wedge pattern on the BTC/USD H4 timeframe, followed by a breakout to the downside, which is a bearish signal. Here’s a detailed analysis and potential trade setup:
Technical Analysis:
1. Pattern Identified: Rising Wedge (Bearish)
2. Breakout Confirmation: The price has broken below the lower trendline of the wedge.
3. Volume Analysis: Increased volume during the breakdown suggests strong selling pressure.
4. Retest Possibility: Price may pull back to the previous support (now resistance) before continuing downward.
Trade Setup:
Short Trade (Sell Setup)
Entry: Around $6,950 - $7,000 (if price retests the broken wedge)
Stop-Loss: Above previous support, around $7,150
Take-Profit:
TP1: $6,500 (Near-term support)
TP2: $6,200 (Major support zone)
Risk-Reward Ratio (RRR):
Entry at $7,000, Stop at $7,150, TP1 at $6,500 → RRR = 3.3:1
Entry at $7,000, Stop at $7,150, TP2 at $6,200 → RRR = 5.3:1
Alternative Scenario (Invalidation)
If price reclaims the broken support and consolidates above $7,150, it may indicate a false breakout, leading to bullish momentum.
