"Jack's Trading Classroom" continues to update the trend after a significant drop in BTCUSD.

On November 25, 2020, we updated a technical analysis titled "BTCUSD Reaches Resistance at High Point". In the article, we mentioned, "It is advisable to temporarily avoid continuous operation with long positions. Instead of entering the market at this price level with a chasing long approach, it is recommended to open short positions with lower leverage, with the liquidation price set above the 2017 high of 19891.99. Although there is a relatively high risk of shorting at the peak, the risk-reward ratio for short positions at this price level is relatively favorable."

On November 25, 2020, we updated a technical analysis titled "Update on BTCUSD Reaching High Resistance Point." In the article, we mentioned, "It is currently advisable to avoid continuous operation with long positions. Instead of entering the market at this price level by chasing long positions, it is better to enter with short positions using lower leverage, setting the liquidation price above the 2017 high of 19891.99. Although there is a relative risk of buying at the top, the risk-reward ratio of entering short positions at this price level is relatively favorable."

Today, let's start by looking at the daily chart of Bitcoin.

After forming a high near 19565.0, Bitcoin experienced a significant drop of nearly 3000 points shortly after the publication of the previous article. Short positions that shorted Bitcoin at the resistance zone made profits of over 2000 points, with the lowest point reaching 16200.0. Since the low point has not been confirmed, it is recommended to temporarily hold off on buying long positions in the spot market.

We conducted an analysis using the Fibonacci sequence, setting this year's high of 19500.0 as 100 in the Fibonacci sequence and the low of March 2020 at 3730.0 as 0. The 61.8 support level is at 13516.0, and the current EMA144 and EMA169 support channels below are in the range of 12200-12500.

As time progresses, the moving average support channel will continue to move up. Combining pattern analysis, the high formed in June 2019 coincides with this range. We can determine that the 61.8 Fibonacci retracement level at 13516.0 is the probable price level for a rebound on the daily chart.

After sharing our view on the daily chart of Bitcoin, we will now analyze the midterm pattern of Bitcoin.

Currently, we observe the four-hour candlestick chart of BTCUSD. After a recent drop in Bitcoin, it found support at the EMA144 and EMA169 moving averages on the four-hour chart. The risk-reward ratio of the previous short position has reached at least 1:3, so it is recommended to close the previous short position entered at the high point and wait for potential long opportunities within the four-hour chart.

Following the "Vegas Tunnel Trading Strategy," before the EMA12 filter line crosses below the EMA144 and EMA169 support channel, if the four-hour candlestick closes above the EMA12 line, the low point of 16200.0 can be set as a stop-loss for entering a long position.

It is important to wait for the conditions to be met before entering this trading strategy to avoid additional risks. Support and resistance levels can be referenced from the black horizontal lines on the chart. Wishing you successful trading.

The recent volatility in the cryptocurrency market has been significant. It is recommended for operators to strictly implement risk management and avoid high leverage and high contract volume operations to prevent additional losses due to volatile market conditions. This article reflects personal opinions, and readers should exercise caution when considering it. Cryptocurrency trading may involve risks to your capital.

WeChat Official Account: Jack's Trading Classroom
Telegram Group: https://t.me/jackscrypto