"Jack's Trading Classroom: BTCUSD Support Trendline, Beware of Rebound Risk"

Original trading classroom by Jack, "BTCUSD Support Trendline - Watch Out for Rebound Risk"

To begin, let's review the analysis article we published earlier, in May 12, 2020, we released a technical analysis titled "BTCUSD Layout After Halving Rewards.".

Those who have been following our updates would remember that in this analysis article, we included a chart. The upward support trendline in the chart was strong and caused a rebound at the support level of 8089.0 during that time.

Currently, we observe the four-hour K-line chart of BTCUSD. In our update on May 19, 2020 titled "BTCUSD Trend After Taking Profit," we mentioned the entry price for long positions.

The entry conditions have not been met since the last update, and recently the BTCUSD price has slightly dropped to 8801.5 forming a low point.

In the chart, we can see that the low point of 8801.5 coincides with the previously mentioned support trendline in the chart and Fibonacci sequence support at 38.28805.5 intersecting with this trendline and low point. Therefore, we consider this range as a defensive zone for long positions.

For operators looking to enter short positions upon breaking the support level of 9419.0, they should be cautious of the risk of a rebound at this trendline and 38.28806.5.

For operators mainly in long positions, judging by the trend for operation, as the price is currently at the bottom of the trend and the trendline has not been broken, this price is a relatively reasonable entry point for long positions.

Stop loss can be set below 38.28806.5 of Fibonacci sequence. If it breaks, one should decisively stop loss and exit to avoid holding positions.

Upper resistance levels
R1 9419.0
R2 10315.0
R3 11380.0
R4 11730.0

Lower support levels
S1 8089.0
S2 7467.0
S3 7190.0
S4 6436.0
S5 5227.5
S6 3832.5

In recent days, the digital currency market has seen large fluctuations. It is recommended that operators strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, please read with caution. Cryptocurrency trading may involve risks to your capital.

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Personal Website: jackbtc.io