$BTC BULLISH BREAKOUT SETUP — LONG ENTRY ON RETEST OF CHANNEL RESISTANCE
Bitcoin is showing strong bullish momentum after breaking out of a descending channel that had previously capped price action. The breakout is supported by rising volume and a clean bullish engulfing candle on the 4H chart, signaling institutional interest and a potential trend reversal.
Price has reclaimed the 200 EMA and is now consolidating above it, forming a bullish flag pattern. RSI is trending upward but still below overbought territory, suggesting room for continuation. MACD has crossed bullishly above the signal line, and histogram bars are expanding, confirming upward momentum. The breakout candle also closed above the previous swing high, invalidating the lower high structure and shifting market sentiment.
A long entry is favorable on a retest of the breakout zone, ideally near the previous channel resistance now turned support. This level aligns with Fibonacci 0.382 retracement and shows confluence with the 50 EMA, making it a high-probability entry zone.
ENTRY: Long on retest of breakout zone
TP1: Minor resistance at recent swing high
TP2: Psychological level near round number resistance
TP3: Extension target based on measured move from channel breakout
SL: Below breakout zone and 50 EMA to protect against false breakout
Risk Management: Use 1–2% of account per trade. Adjust position size based on SL distance. Avoid overleveraging and monitor volume confirmation on retest.
#BTCAnalysis #CryptoBreakout #TechnicalSetup #BitcoinTrading #ChartPatterns
