BTC/USDT Breakout Strategy & Long Setup
2025-01-08
Category: None

The chart presents a clear structure for BTC/USDT on the 4-hour timeframe. After a significant retracement from the recent highs, BTC has formed a descending channel, which it has now broken out of, signaling potential bullish momentum.

Chart Observations
Descending Channel Breakout
BTC was trading in a well-defined descending channel, consolidating near a critical demand zone. The breakout above this channel suggests a potential reversal in trend.

Key Support Zone
The price has respected the support range between $94,800 and $95,400, which aligns with a high-volume area and serves as a strong buy zone. Buyers have consistently stepped in here to defend this level.

Demand Zone Test
A retest of this support zone has provided a new opportunity to accumulate long positions. The candlestick wicks and volume activity indicate significant buying pressure in this area.

Ascending Channel Formation
Post-breakout, BTC is trading within an ascending channel, which offers potential upside targets as the price moves towards the upper resistance trendline.

Short-Term Pullback Completed
The previous bearish movement was capped at the support zone, with the "short position" trade closed as the price reversed into bullish territory. This reversal strengthens the case for a long position targeting higher levels.

Volume and Momentum
Increasing volume near the breakout and demand zone suggests that buyers are regaining control. Momentum indicators (not shown here) likely confirm this bullish bias.

Key Insights for the Trade Idea
Buy Zone The optimal entry for this trade is between $94,800 and $95,400, coinciding with the retest of the support zone and the lower trendline of the ascending channel.

Stop Loss: A tight stop loss at $92,574 protects against downside risk while allowing room for natural price fluctuation.
Targets: Gradual profit-taking is recommended at the following resistance levels, derived from Fibonacci extensions and key price levels.

Targets 🎯:
$96,333 – Immediate resistance and the first key level of profit-taking.
$97,285 – Mid-range resistance within the ascending channel.
$98,230 – Upper mid-point of the bullish channel.
$99,212 – Close to psychological resistance and ascending channel boundary.
$100,211 – Psychological round number and major resistance zone.

Stop Loss 
$92,574: Positioned below the critical support zone to avoid invalidating the bullish setup.

This setup presents a high-risk-to-reward opportunity with clear entry, exit, and risk management strategies. Adjust position size according to your trading plan and always adhere to risk management principles.

