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📈 Bitcoin (BTC/USD) – Double Bottom Reversal Pattern with Wedge Breakout | Continuation Setup
"Buy when there is confirmation, hold with structure, and exit with purpose."
🧠 Market Psychology & Context
Bitcoin has recently undergone a significant correction phase, followed by accumulation and is now showing early signs of a bullish reversal. The 3-hour timeframe displays key price action elements indicating that market strength is forming, and buyers are regaining control. Let's explore the ongoing technical narrative:
📊 Technical Analysis
🔵 1. Double Bottom Reversal Pattern
Structure:
The double bottom pattern as described in this textbook is formed after a clear downtrend, with Bottom 1 and Bottom 2 printed at nearly the same price (~$78,800), indicating strong demand at that support level.
Support Area:
A clear horizontal support level has been tested twice, showing rejection wicks and subsequent price increases. This is a strong signal of buyer presence and price defense.
Break the Old Road:
The old resistance level at $83,500–$84,000 has been broken, confirming a bullish reversal pattern.
Psychology:
Double bottoms reflect the transition from distribution to accumulation. Former short sellers are being stopped out, while new long positions are driving upward momentum.
🔺 2. The Wedge Increases (Continuing In Trend)
Formation:
After breaking through the resistance line, BTC/USD has been consolidating in a rising wedge, a structure that typically has a bearish tendency, but here it has acted as a continuation pattern.
Break & Recheck:
The price has broken above the wedge, indicating strong upward pressure. Currently, it is retracing to test the breakout area of the wedge, providing an ideal entry zone for trend traders.
The Meaning of Volume ( if measurable ):
Typically, a breakout accompanied by volume adds credibility to the move. Although this chart does not show volume, the strong price structure supports the momentum hypothesis.
📏 3. Strategic Trading Plan
✅ Set Up Long Buy
Order Entry Zone:
The current price range is adjusting ($83,500 – $84,000), monitor to confirm bullish price action (such as: bullish engulfing candle, pin bar, or inside bar breakout).
Profit Lock (TP):
🎯 Target at $87,768 – $87,800
This level represents the expected movement measured from the double bottom structure and the previous major resistance area.
Stop Loss (SL):
🚫 Set at $79,441, just below the structural support level of the second bottom. A break below this area will invalidate the bullish hypothesis.
Risk/Reward Ratio:
About 3.5 to 1—a favorable setup for swing traders and weekly positions.
🧭 4. Summary of Key Areas
Limit Area Purpose Level
Support $78,500 – $79,000 Double Bottom Base
Entry Zone $83,000 – $84,000 Rechecking the Wedge / Breakout Up
Target $87,768 – $87,800 Movement Measurement / Resistance
Stop Loss $79,441 Disable Model
📌 Factors That Support Establishment Growth
✅ Double bottom reversal at major support
✅ Break the old trend line followed by a rising wedge
✅ Check the wedge again to provide a low-risk entry point for the trade.
✅ Clean disable level below structure
✅ Potential increase aligns with previous highs
⚠️ Risk Disclaimer
As always, risk management is a crucial factor. Use appropriate position sizing, set alerts near key areas, and don’t trade without confirmation. Bitcoin is very volatile, and liquidity traps are common.
📢 Conclusion
This BTC/USD setup presents a high-probability long buying opportunity based on classic technical analysis principles. The combination of a reversal pattern, a continuation breakout, and a measured move prediction makes it an ideal candidate for a structured trade.
Heavenly Direction: 🔵 Increase (to $83,000)
Disable: 🔴 Break and close below $79,400
Trend Structure: Reversal and Continuation
Transaction Type: Swing / Short Position
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