"Jack's Trading Classroom: BTCUSD Mini Downtrend Breakout"

Original trading classroom by Jack, "BTCUSD Mini Downtrend Breakout"

Currently, we are looking at the one-hour candlestick chart of BTCUSD. Today's analysis is divided into three parts:

1. Viewing the four-hour or daily candlestick chart on a larger time frame

BTCUSD has formed a double top pattern. Recently, many have asked me whether a double top pattern has formed and if it's a good idea to enter a short position. They also inquired about the risk-reward ratio and whether it's a good time to enter. I have publicly responded on my fan page and Weibo that currently, in the medium term, there is indeed a formation of a double top pattern. However, it is uncertain whether the BTCUSD price can successfully break through the previously mentioned support trendline. Additionally, there is strong daily support at 8089.0 below. It has not reached a level I consider a reasonable entry point.

Readers who follow our channel should be clear that the trading module we provide is based on entering the market only when a pattern is established, avoiding entering early to increase the risk-reward ratio, which can significantly reduce the success rate of operations.

2. Breaking the downtrend on a shorter time frame

Earlier, BTCUSD broke through the resistance trendline in the morning on a shorter time frame, entering a long position and can be expected to continue to rise in the short term, judging by the trend. As the downtrend has been broken, in the short term, we can look back to the original trend starting point and set the bottom low as the stop-loss level.

3. Mid-term retracement to Fibonacci sequence 61.8 and 45.0

We can see in the chart the Fibonacci sequence. Earlier, the price retraced to the Fibonacci sequence 61.8 and 45.0 and did not fall below, indicating a strong trend rebound point until it falls below 61.8 and closes lower. The future target can be seen at 161.8 and 117.0, as we have mentioned in previous teachings. It is worth noting that the Fibonacci sequence 161.8 and 117.0 coincides with the target price of 11088.0 mentioned earlier. If the Fibonacci sequence 100 and 9960.0 breaks, the trend is expected to continue to be bullish.

Resistance levels above

R1 10315.0
R2 11380.0
R3 11730.0

Support levels below

S1 9419.0
S2 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 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, please use caution when referring to it, as cryptocurrency trading may pose risks to your capital.

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

Related Readings

• "Jack's Trading Room" BTCUSD Indicators Presenting Bullish Patterns Again
• "Jack's Trading Room" Layout After BTCUSD Halving Rewards

Join Telegram now to get the most accurate blockchain news and cryptocurrency updates!