"Jack's Trading Classroom: BTCUSD Bitcoin Short-term and Mid-term Trend Analysis"
Original trading classroom by Jack, "BTCUSD Bitcoin Short-term and Mid-term Trend Analysis"
Table of Contents
After the article "BTCUSD Consolidation Enters the Final Stage, Waiting for Trendline Breakout to Choose Direction" was published on October 7, 2020, Bitcoin chose to break through the resistance trendline of the converging triangle upwards. The price reached a high of 11725.0 on October 13, which is close to the resistance level mentioned in our previous article at 11748.5, causing a rebound from this high point. Next, let's continue to observe the subsequent trend of Bitcoin.
Currently, looking at the four-hour candlestick chart of BTCUSD, we can see that after breaking through the original converging triangle resistance trendline, Bitcoin continued to strengthen in price, forming an upward trend within the chart.
We can determine that Bitcoin is still in a medium-term bullish uptrend, but at present, price operators should avoid attempting long positions, as Bitcoin's price is currently at the top of the upward trend and has formed a head and shoulders pattern in the black rectangle range on a short-term cycle. If the bottom is broken in the short term, there will be a short-term decline, which can also be seen as a medium-term price retracement.
It is recommended to wait for a pullback to the lower support trendline and support level of 10990.0 to confirm the formation of the bottom, and then consider entering with long positions or spot positions, keeping the risk-reward ratio within a better range.
Upper resistance levels:
R1 11362.0
R2 11579.5
R3 11748.5
Lower support levels:
S1 10990.0
S2 10315.0
S3 9782.0
In recent days, the digital currency market has experienced significant volatility. 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 for personal commentary, please read with caution, as cryptocurrency trading may pose risks to your capital.
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