BTC/USD Intraday Range Breakdown with Potential Reversal Setup

Market Context & Structure:

Sideways Range Movement:
The chart shows two primary consolidation (range-bound) zones marked with green shaded rectangles. BTC has been trading within these horizontal zones for a considerable period, suggesting indecision or accumulation/distribution phases.

Current Breakdown:
Recently, BTC broke down from the upper consolidation range (~109,800–110,200 zone) and dipped below, forming a bearish move. This is confirmed by the red candles and the price moving out of the prior horizontal range.



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Key Levels:

Resistance Zone: ~110,000
Marked by the upper green line and previous consolidation highs. This will likely act as resistance if price tries to move up again.

Support Zone: ~107,400
Marked by the lower green horizontal line. Price touched this area and bounced slightly (as shown by the highlighted circle).



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Candlestick Patterns:

Bearish Momentum:
Multiple red candles indicate selling pressure. However, the recent candle shows a potential hammer-like recovery wick, suggesting some buyer interest near the support.



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Projection (Dotted Line with Arrow):

The chart includes a bullish recovery scenario illustrated with a blue dotted line. This indicates a possible short-term reversal from the support area with a target to retest the previous resistance around 110,000.



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Interpretation:

If Price Holds Above Support (107,400):
A potential bounce and retest of the 110,000 resistance is possible — a bullish reversal setup.

If Support Breaks Decisively:
Further downside may be expected, possibly toward 106,000 or lower. Sellers would gain control.



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Trading Plan (Not Financial Advice):

Long Entry: Near 107,400 if bullish confirmation forms (e.g., bullish engulfing or higher low).

Stop Loss: Below 107,000 to limit downside.

Target: 109,800–110,200 zone.