Jack's Trading Room | BTCUSD Short-Term Analysis Update

On May 25, 2021, we updated the technical analysis "Potential Bottom Pattern for BTCUSD," in which we mentioned a potential double bottom pattern, combined with the bullish condition of trendline breakout.

On May 25, 2021, we updated the technical analysis "BTCUSD Potential Bottoming Pattern," where we mentioned a potential double bottom pattern combined with bullish conditions following a trendline breakout.

Today, we see a short-term head and shoulders bottom pattern on the hourly candlestick chart of BTCUSD, with the previous high neckline resistance at 39221.5 effectively broken.

The Fibonacci resistance zone of 127.2-138.2 above is between 42321.0-43291.5, coinciding with the double bottom neckline resistance at 42444.0.

The pullback of the right shoulder falls at the Fibonacci level of 61.8 at 36551.5, indicating that a breakout above the Fibonacci 127.2-138.2 resistance zone at 42321.0-43291.5 is likely.

• The Fibonacci 161.8 level is considered a target price of 45373.0.
• The Fibonacci 200 level is also a target price of 48743, satisfying the head and shoulders bottom rally target.

If trading based on this head and shoulders bottom pattern, setting a stop-loss target at the low point of the right shoulder at 36495.0 would be more appropriate.

In recent days, the digital currency market has experienced significant volatility. We recommend that traders strictly adhere to risk management practices 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. Trading virtual currencies may pose risks to your capital.

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