BTCUSD: Price Drop to Support line of WedgeHello everyone, here is my breakdown of the current Bitcoin setup.
Market Analysis
From a broader perspective, the price action for Bitcoin has been bearish since the rejection from the Resistance Zone near the 122000 level. This initiated a downtrend that has since evolved from a channel into the current Downward Wedge pattern, which has been guiding the price through a series of lower highs and lower lows.
Currently, the price is at a critical decision point. After a bounce from the lower part of the wedge, it has rallied correctly and is now directly testing the descending resistance line of the formation.
My Scenario & Strategy
My scenario is based on the expectation that this Downward Wedge is a continuation pattern and the dominant downtrend will resume. I'm looking for the price to be rejected from the wedge's resistance line. A confirmed failure to break higher would signal the start of the next impulsive move down. This move is expected to have enough momentum to break through the intermediate Support zone around the 109600 level.
A breakdown below the 109600 support zone would validate the scenario. The primary target for this move is 105700 points, which aligns perfectly with the lower support line of the wedge pattern.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
