Bitcoin just pulled off the move traders wait weeks for: a clean break from a falling wedge on the 4-hour chart, a textbook retest near $108,000, and rising liquidity that suggests the path of least resistance is higher. With price consolidating in a tight band and volume expanding, the setup points to a measured push toward the $114,500–$115,000 zone—if buyers defend the retest and avoid a fakeout.

What just happened on the 4H chart

Bitcoin broke above a descending wedge that’s been in play since early October, popped to ~$111,000, and then retested the wedge’s upper boundary near ~$108,000—precisely where buyers needed to show up. BTC trades around $108,421 (-0.6% daily), with market cap near $2.16T and 24h volume at ~$104.8B, up ~60.9%, signaling active participation and ample liquidity.

The range to watch is $107,000–$111,000. A sustained bid above the retest area keeps the bullish continuation thesis intact; lose it, and the move risks devolving into a failed breakout.

Why this matters to traders

Falling wedge breakouts tend to trend when the retest holds because trapped shorts and late shorts get squeezed as price reclaims higher levels. The nearest obstacle is $115,000—a logical target where supply has repeatedly pushed price back. Strong volume on the break and retest supports the idea of accumulation, but note that failed breakouts often accelerate in the opposite direction, especially if $107,000 gives way.

Key levels and invalidation

• Immediate support: $108,000 (retest zone)
• Critical support: $107,000 (structure line; loss risks momentum unwind)
• Deeper support: ~$104,000 (recent stabilization base)
• Near-term resistance: $111,000 (intraday supply)
• Primary target: $114,500–$115,000 (measured move / prior resistance)
• Invalidation: 4H close back below $107,000 or back inside the broken wedge with rising sell volume

Trade plan idea (educational, not financial advice)

• Continuation setup: Look for a 4H close above $111,000 with rising volume; target $114.5–$115K, trail stops under higher lows.
• Retest add-on: If price revisits $107.5–$108.3K and holds, consider risk-defined entries; typical invalidation sits below $107K wick lows.
• Failed-breakout scenario: If $107K breaks on strong sell volume, stand aside and watch for a liquidity sweep into ~$104K; only re-engage on a reclaim with confirmation.
• Confirmations: Expanding 4H volume, rising spot bid, and contained funding/OI spikes to avoid overcrowded longs.

Risk checklist

• Volatility risk: A 60%+ jump in 24h volume can amplify wicks; manage size and use hard stops.
• Liquidity pockets: The $111K zone has rejected before; partial takes into resistance reduce round-trip risk.
• Whipsaw potential: A single 4H candle back below $107K turns the setup from continuation to caution.

Bottom line

As long as $107,000 holds, the bias favors a push toward $114,500–$115,000. Lose that level decisively, and the cleaner R/R likely shifts to patience, waiting for a reset closer to $104,000 or a convincing reclaim. Let volume and 4H closes lead your decisions—don’t chase, make price prove it.

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