Bitcoin (BTC/USD) Technical Analysis & Trading Plan

Bitcoin (BTC/USD) Technical Analysis & Trading Plan – February 28, 2025

Market Overview

The Bitcoin (BTC/USD) price is currently trading at $79,770, showing a -0.74% decline in the latest 4-hour candlestick. The chart illustrates a falling wedge trading pattern, which is considered a bullish reversal signal. The price is approaching the lower boundary of the wedge, signaling a potential breakout to the upside.

Technical Indicators & Key Observations

Falling Wedge Pattern:

The price has been making lower highs and lower lows within a falling wedge formation (red and green trendlines).
A breakout above the upper boundary of the wedge could trigger a strong bullish rally.

Support and Resistance Levels:

Immediate support: $76,665
Major support: $67,679
Key resistance levels:
$88,671
$91,271
$95,497
$108,329 (Major long-term resistance)

Momentum Indicators:

RSI (Relative Strength Index): 22.26 (oversold), indicating potential upward momentum.
Stochastic Oscillator: 16.14, also in the oversold region, confirming a possible reversal.
Money Flow Index (MFI): Showing weak inflow, but a reversal at these levels could indicate increasing buying pressure.
Cipher_B Divergences: Potential bullish divergence forming, adding confluence to the breakout scenario.

Professional Trading Plan

Entry Strategy

Aggressive Entry: If Bitcoin closes a 4-hour candle above the wedge's upper trendline (~$80,500), an early entry can be considered.
Conservative Entry: Wait for confirmation above the $82,000 level with strong volume before entering a long position.

Profit Targets

First Target: $88,671 (previous local high)
Second Target: $91,271 (psychological level)
Third Target: $95,497 (strong resistance)
Ultimate Target: $108,329 (major long-term resistance)

Stop-Loss Strategy

For aggressive traders: Below $76,500 (recent low)
For conservative traders: Below $74,000 to reduce risk exposure

Risk Management
Risk-to-reward ratio: 1:3 or higher (entry should be calculated to maintain proper risk-reward)
Position Sizing: Allocate 2-5% of capital to this trade, considering volatility.

Conclusion
Bitcoin is currently trading at a critical support level within a falling wedge. The RSI, Stochastic, and MFI indicators suggest oversold conditions, indicating a potential bullish breakout. Traders should watch for a confirmed breakout above the wedge with strong volume before entering a position. Targets remain between $88,000 and $108,000, with well-defined stop-loss levels to minimize risk.

💡 Recommendation: Monitor price action closely, especially in the next few 4-hour candles. If BTC breaks above the wedge, prepare for a bullish move towards resistance levels.