Chart Overview
The BTC/USD (Bitcoin vs. U.S. Dollar) one-hour chart shows a textbook case of support break and potential retest scenario — a pattern that helps traders visually understand how supply and demand zones interact in real-time.
In this chart, Bitcoin recently faced rejection near $110,681 and started a downward move, approaching the next major support levels.
Key Observations
The chart includes several clearly defined levels:
- Resistance Zone: Around $110,600 – $111,000
- Immediate Support: Around $106,400
- Secondary Support: Near $102,784
- Major Psychological Level: $99,000
These zones act as checkpoints where price may react due to historical interest from buyers or sellers.
The Breakdown Structure
Bitcoin attempted to maintain stability above $107,000 but gradually lost momentum.
A large red zone on the chart highlights the recent rejection area, where sellers became active after multiple failed attempts to push higher.
The drop below $106,400, marked with a yellow zone, suggests that short-term sentiment has shifted toward caution.
This price level has acted as a strong horizontal support several times, making it a crucial area to observe for future reactions.
The Retest Concept
The blue projected path drawn on the chart demonstrates a potential retest pattern — an essential technical education concept for all traders.
When price breaks a support zone, it often:
- Drops quickly due to trapped buyers exiting,
- Pulls back to retest the broken level (now resistance),
- Continues in the breakout direction if the retest fails.
This simple yet powerful sequence helps explain why markets often revisit broken levels before continuing their next leg.
In the Bitcoin chart above, the blue wave pattern illustrates a likely move where price may:
- Touch the $106,400–$107,000 zone again (retest),
- Face rejection, and
- Potentially continue lower toward $102,784 or even $99,000 if momentum persists.
Volume Confirmation
The lower section of the chart shows rising volume bars during the initial breakdown, followed by lighter volume during sideways consolidation.
This behavior is common when traders take profits or wait for the next confirmation signal.
A genuine shift in momentum often occurs when a retest is met with strong volume activity, confirming that participants agree with the direction.
Understanding the Market Behavior
This type of price structure teaches valuable lessons about psychology and timing:
- When a major resistance level holds repeatedly, confidence starts to weaken.
- Once a key support breaks, sellers gain control.
- The retest offers a logical point for traders to reassess — not to predict, but to observe structure strength.
By understanding these emotional and structural phases, learners can interpret market moves more clearly without relying solely on indicators.
Educational Takeaways
Here are a few important lessons from this setup:
- Support and resistance zones are dynamic — they often switch roles after a breakout.
- Breakdown + Retest is one of the most reliable confirmation techniques in price action.
- Volume spikes validate momentum; quiet volume indicates indecision.
- Round psychological levels like $99,000 matter because large participants often act near them.
- Learning to map zones instead of exact prices gives more flexibility in analysis.
Broader Context
While the 1-hour timeframe highlights short-term movement, traders studying this chart can also apply the same logic to daily or weekly structures.
Understanding these concepts builds confidence in recognizing continuation and reversal setups across different markets — whether it’s crypto, forex, or equities.
Conclusion
The Bitcoin chart provides an excellent visual example of how support breakdowns and retests develop within price action.
This isn’t a forecast, but an educational case study showing:
- The natural flow of market structure,
- How traders interpret reactions at major levels, and
- Why patience and observation matter more than prediction.
When studying such setups, always focus on process rather than outcome — because learning structure behavior is the foundation of technical discipline.
Disclaimer: This content is created purely for educational purposes. It does not provide any investment or trading advice. Always conduct your own analysis or consult a qualified financial advisor before making trading decisions.