Here's what I've noticed in the technical analysis of BTC recently. When you see a descending expanding wedge on the chart, it can be a signal of a reversal. Many traders overlook this formation, even though it is quite indicative.

The essence is that a descending expanding wedge forms when the upper trendline goes down with each new high, while the lower trendline expands downward even faster. Each new low is lower than the previous one, and the gap between the lines widens over time. This indicates that the bearish momentum is gradually losing strength.

What's interesting here? An expanding wedge is not just an arbitrary pattern. When the price breaks above the upper boundary, a reversal upward often begins. I've seen this multiple times across different timeframes. The key is to wait for this breakout, not to enter too early.

How do I trade these moments? First, I wait for confirmation of a breakout above the upper line of the descending expanding wedge. It's not just a touch but a true breakout. Then I look at the volume — if it increases during the breakout, it's a serious signal. Increased volume suggests that a reversal could develop into a full-fledged bullish trend.

I simply calculate profit targets by taking the height of the entire formation at its widest point (the distance between the upper and lower lines) and projecting this distance upward from the breakout point. This provides a rough guideline for exit.

Overall, a descending expanding wedge is one of those patterns that work thanks to market psychology. When bears lose control and bulls start to take over, the formation confirms this transition. It's worth watching for such moments, especially when they align with other indicators. On Gate, you can conveniently monitor these levels and prepare for entries in advance.