"Jack's Trading Classroom: Long and Short Layout of BTCUSD Bottom Patterns"

Original Jack's Trading Classroom "Long and Short Layout of BTCUSD Bottom Pattern"

In yesterday's analysis of the "Head and Shoulders Pattern of BTCUSD," it was suggested to enter short positions with a stop loss at the head at 8970.0 and set profit targets at the bottom EMA support or using Fibonacci retracement levels.

BTCUSD price successfully broke below the neckline to reach the EMA200 support and after a rebound, it oscillated downwards, with the lowest price of BTCUSD reaching 8669.0 forming a low.

Currently, we see a one-hour candlestick chart of BTCUSD, where we can observe a bottom pattern - a rounded bottom within the one-hour timeframe.

In the article released on March 01, 2020, titled "BTCUSD Short-term Bearish Sentiment Rising," it was mentioned that the downtrend, once broken, indicates a trend reversal with basic trend breakout analysis.

As we all know, after a trendline breakout, there is a high probability that the price will return to the previous highs and lows of the trend. After BTCUSD price returned to the previous high of 8970.0, it formed the head and shoulders top pattern as mentioned yesterday.

The high of 8970.0 precisely marks the position of the head in the head and shoulders pattern. We should continue to focus on the upper high of 8970.0 and consider this high as a structural resistance point.

It is recommended that if this high is breached, one can enter a breakout long position, as the Fibonacci retracement level of 50.0 is at 8687.0. After the breakout, the future target price can be set at the Fibonacci sequence level of 150 at 9253.0.

Upper resistance levels
R1 9146.0
R2 9419.0

Lower support levels
S1 8807.5
S2 8633.0

In recent days, the cryptocurrency market has shown significant 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 is for informational purposes only. Readers should exercise caution and virtual currency trading may involve risks to your capital.

WeChat Official Account: Jack's Trading Room
Personal Website: jackbtc.io

Related Reading

• "Jack's Trading Room" Analysis of the Head and Shoulders Pattern of BTCUSD
• "Jack's Trading Room" BTCUSD Still Primarily Bearish

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