BTC/USDT – Fakeout Above Rising Channel | Why Clean Breakouts St

This chart highlights an important lesson in breakout trading: Not all breakouts are valid, even when backed by volume.


🔍 Technical Breakdown:
BTC was trading inside a well-respected ascending channel, with multiple touches on both the upper and lower bounds.

Price broke above the channel with a 15-minute candle close and volume, giving the appearance of a clean breakout.

However, shortly after, price re-entered the channel, invalidating the breakout. This is what we call a fakeout or bull trap.


❓ So Why Did the Breakout Fail?
Lack of Follow-Through Buyers:
Despite volume, there wasn’t enough buyer continuation above the breakout level to sustain momentum.

Liquidity Hunt:
The wick beyond the upper trendline likely served to trigger breakout entries and stop losses of short sellers, only to reverse after liquidity was collected.

Key S/R Reaction:
After re-entering the channel, price reacted at a minor horizontal level (previous S/R), attempted another push, but failed again, confirming weakness.