"Jack's Trading Classroom": BTCUSD once again forming a downward pattern in the medium term

Jack's trading classroom "BTCUSD forms a downward pattern again in the midterm"

Currently, we see the 4-hour candlestick chart of BTCUSD, where we can observe a head and shoulders pattern. Earlier, the BTCUSD price broke below the neckline trend line, and with the high and low points on the 4-hour chart continuing to decrease after falling below the neckline range, we must assess that there is still a chance for the BTCUSD price to continue falling.

We can also see that the right shoulder in the chart precisely aligns with the Fibonacci sequence rebound level of 61.8% - 23.5%. If the price retraces to 61.8% and breaks below the neckline range, we can then focus on the two key price levels below.

1. Fibonacci sequence range 127.2 - 138.2, 7584.5 - 7820.5

This range is the Fibonacci high probability rebound zone. When reaching this zone, short positions should pay extra attention to the rebound risk.

2. Fibonacci sequence 161.8, 7078.0

Since the retracement of the right shoulder falls on the Fibonacci sequence 61.8% - 23.5%, in the future, we can look down to the 161.8 as the bearish target price of 7078.0. Typically, in a head and shoulders pattern, we would set the target price at the Fibonacci sequence 200 level, but there is a critical daily support level at 6436.0 below. Therefore, the current pattern suggests setting the target price at 161.8 of 7077.0 after retracing to 61.8%, rather than using the Fibonacci sequence 200 level of 6258.5 as the target price.

Upper resistance levels

R1 8089.0

R2 8633.0

R3 9419.0

Lower support levels

S1 7190.0

S2 6436.0

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that operators strictly follow risk management and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is for personal commentary, please read with caution, as cryptocurrency trading may involve risks to your capital.

WeChat Official Account: Jack's Trading Classroom

Personal Website: jackbtc.io

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

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