"Jack's Trading Classroom: BTCUSD continues to consolidate, watch out for short-term reversal risks"

Original trading classroom by Jack, "BTCUSD continues to consolidate, pay attention to short-term reversal risks"

Starting with a review of our previous analysis article, on March 25, 2020, we published a technical analysis "BTCUSD Trend Analysis." At that time, we mentioned in the article, "Currently, there is a consolidation near the resistance level, and in the future, we need to observe the breakout situation to determine the trading direction."

Today, we are still looking at the one-hour candlestick chart of BTCUSD. Since the publication of "BTCUSD Trend Analysis" on March 25, 2020, BTCUSD has continued to oscillate within the range we marked at that time, and the direction of the market is still unclear. Following trend trading logic, for traders who operate in short-term trends, it is recommended to temporarily wait and observe for a breakout situation. If the upper limit of the range at 6981.5 is broken and closes higher, one can consider entering a long position after the breakout, following the upward trend of the larger cycle. It is advisable to set stop-loss levels below the support trendline or the low point.

The lower limit of the range can refer to the daily support level at 6436.0. If the daily support level at 6436.0 is breached and closes lower, the support trendline will also be broken simultaneously. In this case, it is more reasonable to enter a short position after the breakout, with the stop-loss level recommended to be set at the previous high point.

Upper resistance levels
R1 7190.0
R2 8089.0
R3 9419.0
R4 10315.0

Lower support levels
S1 6436.0
S2 5227.0
S3 3832.5

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

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

Related Readings

• "Jack's Trading Classroom" BTCUSD Trend Analysis

• "Jack's Trading Classroom" BTCUSD Simple Trend Update

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