"Jack's Trading Classroom: Bearish Sentiment on BTCUSD Continues to Rise"

Original Jack's Trading Classroom "BTCUSD Bearish Sentiment Continues to Rise"

On March 9, 2020, we published a technical analysis titled "BTCUSD Forms a Mid-Term Descending Pattern Again." In the article, we mentioned that

"BTCUSD is showing a head and shoulders pattern on the four-hour chart. Earlier, the BTCUSD price had dropped below the neckline trendline, and the high and low points on the four-hour chart continued to decrease after breaking below the neckline range. Therefore, we must assess that there is still a chance for the BTCUSD price to continue to fall."

Today, we see the four-hour candlestick chart of BTCUSD, where we can observe that the BTCUSD price, following our previous layout strategy, rebounded within the Fibonacci sequence range of 127.2-138.27584.5-7820.5.

After the rebound, the price reached the upper resistance level of 8089.0 and failed to close higher, leading to another decline. Currently, the price is still within our preset Fibonacci range of 127.2-138.27584.5-7820.5, as the retracement above touched the Fibonacci sequence 61.89223.5, and the downward structure remains intact. The EMA exponential moving average also shows a downward crossover and divergence, indicating a basic bearish moving average alignment.

Therefore, we can maintain the same operational mindset as in the previous article, expecting the price to potentially revisit the Fibonacci sequence level of 161.87078.0 as mentioned before.

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 implement risk control measures and avoid high leverage and high contract volume operations to prevent additional losses caused by turbulent market conditions. This article reflects personal opinions, and readers are advised to consider it carefully, as cryptocurrency trading may pose risks to your capital.

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

Related Reading

• "Jack's Trading Room" BTCUSD Forms a Mid-Term Descending Pattern Again
• "Jack's Trading Room" Short Review and Opinion on BTCUSD Daily Chart

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