BTC Breakout Setup: Trading the 1D Bearish Order Block FlipBTCUSDT Perpetual ContractBYBIT:BTCUSDT.PMubiteBitcoin is testing a critical diagonal resistance and a major 1D Bearish Order Block. Discover the exact criteria needed to trade the Breaker Block flip for a high-probability long setup. Welcome to another Mubite technical market update. Bitcoin (BTC/USDT) is currently standing at a major structural crossroads. After a prolonged period of downward price action confined within a macro descending channel, the market is showing early signs of a potential bullish reversal. However, the path upward is blocked by a significant zone of institutional supply. Navigating this upcoming cluster of resistance requires patience and strict entry criteria. Here is the technical breakdown of the current BTC chart and the precise parameters required to execute a high-probability long trade. The Market Structure: Descending Channel and Local Resistance As mapped out on the daily chart, Bitcoin has been trapped inside a broad descending channel. More importantly, the recent price action is pushing against a local diagonal trendline (the inner white descending line). While breaking this diagonal line is the first step for the bulls, it is not the actual buy signal. Breakouts from diagonal trendlines are notoriously prone to "fake-outs" because the true institutional resistance lies just above it in the form of horizontal supply. The Ultimate Barrier: The 1D Bearish Order Block This zone represents the origin of a previous aggressive sell-off. Institutional sellers have historically defended this area, meaning there are likely resting sell orders waiting to absorb any incoming retail buying pressure. Entering a long position while price is directly underneath or inside this red box is extremely dangerous. The Mubite Trade Plan: The Breaker Block Flip To safely enter a long position, we must wait for the market to prove that the sellers have been exhausted and the buyers are fully in control. We are looking for this Bearish Order Block to fail and transform into a Bullish Breaker Block. Here is the exact step-by-step execution plan: 1. The Breakout: Wait for the price to push through the 1D Bearish OB. 2. The Volume Confirmation: This upward push must be accompanied by strong, above-average trading volume. Low-volume breakouts are often liquidity grabs (traps) that quickly reverse. 3. The Timeframe Close: We need a definitive 4-Hour (4H) candle close completely above the Bearish OB. A wick above the box is not enough; the body of the 4H candle must close above the resistance to confirm the shift in momentum. 4. The Flip (Breaker Block): Once the 4H candle closes above the red box, the failed Bearish Order Block officially becomes a Bullish Breaker Block. Old supply has flipped to new demand. Execution and Risk Management Once the Breaker Block is confirmed, the setup is primed. * The Entry: Do not chase the initial green breakout candle. Wait for the inevitable pullback. Enter your long position on the retest of the newly formed Breaker Block (as indicated by the blue path on the chart). * The Stop Loss: Risk management is paramount. Place a calculated Stop Loss (SL) strictly below the bottom of the Breaker Block or the most recent structural swing low. If price drops back inside and closes below the block, the setup is invalidated. * The Target: Once the level flips, target the next major liquidity pools or the upper boundary of the macro descending channel. Trading is about reacting to confirmed data, not predicting the exact top or bottom. Wait for the volume, wait for the 4H close, and let the market tip its hand before deploying capital. Disclaimer: This analysis by Mubite is for educational purposes only and does not constitute financial advice. Always manage your risk.