I noticed an interesting pattern on the BTC chart that deserves a closer look. It's about the expanding wedge — one of my favorite patterns for catching reversals in downtrends.

The essence is that the expanding wedge forms quite specifically. The upper boundary of the pattern shows a series of consecutively decreasing highs, while the lower boundary is where the magic happens. There, we see lows that become progressively lower, but the distance between the upper and lower lines increases with each fluctuation. This expansion is what gives the pattern its name.

What makes this pattern so interesting? When an expanding wedge forms, it signals a gradual weakening of the downward impulse. The market seems to lose confidence in further decline. Volatility increases, but the downward direction weakens. This creates ideal conditions for a reversal.

How I trade this. The main rule — don’t rush. I wait until the price breaks above the upper line of the expanding wedge with confirmation. It’s not just a touch, but a breakout with a close above the level. The second point — volume. If volume sharply increases during the breakout, it’s a serious signal that a reversal is likely. Without volume, the breakout often turns out to be false.

I simply calculate targets: take the full height of the expanding wedge at its widest point and project this height upward from the breakout point. This gives a quite logical level for taking profits.

Overall, if you see such a pattern — it’s a reason to pay closer attention. An expanding wedge often precedes strong upward movements, especially after a prolonged decline. The market is just accumulating energy before taking off.