"Jack's Trading Classroom": BTCUSD daily chart sees a pullback, confirming Bitcoin's continued strength

Original trading classroom by Jack, "BTCUSD Daily Chart Confirms Bitcoin Continues to Strengthen with Pullback Confirmation"

Original by Jack Jack's Trading Room "BTCUSD Daily Chart Confirms Bitcoin Continues to Strengthen"

In September 07, 2020, we released a technical analysis "BTCUSD Daily Chart Spot Entry Conditions", in which it was mentioned: "If the daily K-line price closes higher than the upper EMA12 filtering line, and cannot pass below the channel formed by EMA144 and 169, it can be considered as a completed pullback. Buy spot with the low point as the stop-loss, and set the lower point as the spot stop-loss level."

Today we look at both the hourly K-line chart and the daily chart of Bitcoin. Starting with the hourly chart, from September 03, 2020, the K-line chart below the four-hour cycle shows a stronger bearish trend, with continuous lower highs and lower lows. After forming lows near 9820 on September 06 and September 09, the short-term bottom began to rise, forming a rounded bottom pattern. The recent short-term highs have all been broken, so it is judged that the rounded bottom is established and the short-term trend will turn stronger.

Looking at the daily chart of Bitcoin, continuing the analysis from the previous article "BTCUSD Daily Chart Spot Entry Conditions", after confirming the pullback of the EMA144 and 169 channels, the daily K-line closed above the EMA12 filtering line. Currently, the spot entry point for Bitcoin has a good risk-reward ratio, indicating the first pullback of the bull market support channel. The spot entry stop-loss can be set at the low point of 9821.5, and long-term holders should wait for the appearance of a top pattern to exit.

Resistance levels
R1 10990.0
R2 11362.0
R3 11579.5
R4 11748.5

Support levels
S1 10315.0

In recent days, the digital currency market has experienced significant volatility. It is recommended that operators strictly implement risk control measures and avoid high leverage and high contract volumes to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, please read with caution, as cryptocurrency trading may involve risks to your capital.

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