"Jack's Trading Classroom: BTCUSD Short Commentary after Breaking Support Trendline"

Original trading classroom by Jack, "Short Commentary on BTCUSD after Breaking Support Trend Line"

Starting with a review of our previous analysis article, on April 9, 2020, we published a technical analysis "Analyzing BTCUSD Trend in a Different Pattern - Rising Wedge". In that article, we mentioned, "If this range is broken, BTCUSD will show that the bottom support trendline has been broken, indicating that the upward buying pressure has been exhausted. Therefore, you can also try to enter short positions based on yesterday's logic."

Today, we see the four-hour candlestick chart of BTCUSD. Earlier, BTCUSD broke below the previously mentioned support trendline, and the original support level of 7190.0 was also broken downwards. We can determine that the rising wedge pattern mentioned in the original analysis article has been breached, and the conditions for entering short positions have been met. The price later dropped to 6751.5, forming a low point. It is expected that the bearish trend will continue to suppress the bullish side within the four-hour candlestick chart of BTCUSD in the future.

Although the price is likely to continue to decline, it is still important to note that there may be a retracement in the future. Before the low point of 6751.5 is breached, we can anticipate the price may retrace to the two upper price levels, which are Fibonacci 38.27198.5 and 61.87028.0, respectively.

It is important to note the upper Fibonacci level of 38.27198.5, which overlaps with the upper resistance range of 7190.0-7202.0 mentioned earlier, considered an effective resistance range. It is recommended that operators should still focus on short positions as the current pattern remains bearish. Until a bullish pattern emerges in the future, the focus should be on short positions.

Upper resistance levels
R1 7190.0
R2 7467.0

Lower support levels
S1 6627.5
S2 6436.0
S3 5898.5
S4 5388.5

In recent days, the cryptocurrency market has seen larger fluctuations. It is recommended that operators strictly implement risk control measures and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is a personal opinion, please read with caution, as cryptocurrency trading may pose risks to your capital.

WeChat Official Account: Jack's Trading Classroom
Personal website: jackbtc.io

Further Reading

• "Jack's Trading Classroom" BTCUSD Analysis in a Different Pattern - Rising Wedge
• "Jack's Trading Classroom" BTCUSD Continues Strong Trend Without Reversal

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