"Jack's Trading Classroom: Analysis on the Mid-term Downtrend of BTCUSD"

Original trading classroom by Jack, "BTCUSD Mid-term Bearish Trend Analysis"

On June 13, 2020, we posted a technical analysis titled "BTCUSD Short-Term Breakout Strategy" on this account. The article mentioned that the entry condition for a short-term long position was a breakout above the range of 9528.0-9539.0. However, the BTCUSD price failed to meet our preset entry condition and continued to decline, rendering this technical analysis ineffective.

Currently, we have switched to the four-hour candlestick chart of BTCUSD. In the Bitcoin four-hour candlestick chart, we can see that both the high and low points have been declining. Earlier, BTCUSD formed a low at 8901.0 and rebounded to near the support-resistance level of 9528.0, but there is still a high concentration of chips in the range of 9678.5-9755.5.

Until the trendline formed by the pressure from the resistance at the aforementioned range and the descending high points above is broken, we will continue to mainly operate in a bearish manner. Only after breaking through the chip concentration zone at 9678.5-9755.5 will we assess a trend breakout and switch to a bullish operation.

Upper resistance levels
R1 9678.5-9755.5 range
R2 10124.0

Lower support levels
S1 9528.0
S2 9419.0
S3 9170.0
S4 8089.0

In recent days, the digital currency market has experienced significant 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 reflects personal opinions. Readers should exercise caution when considering it, as cryptocurrency trading may pose risks to your capital.

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