"Jack's Trading Classroom: How to Determine BTCUSD Inverse Head and Shoulders Pattern After Taking Profit"

Original trading classroom by Jack, "How to Determine After Profit-Taking in BTCUSD Head and Shoulders Bottom Layout"

In the analysis article "BTCUSD Bitcoin Trend Outlook" on June 30, 2020, it was mentioned: "In the short term, the future trend of Bitcoin can still be slightly bullish, and the first target price can be set in the Fibonacci sequence 127.2-138.2 range of 9282.0-9321.5."

Currently, we also see the one-hour candlestick chart of BTCUSD, after reaching the first target range of the Fibonacci sequence 127.2-138.2 at 9282.0-9321.5, it is suggested that operators who entered the market with the head and shoulders bottom pattern should consider taking profits in the range of 9282.0-9321.5 as there is a concentration of chips.

The one-hour cycle chart currently forms a standard upward trend. The remaining positions can continue to be held, with the Fibonacci sequence 2009544.5 as the target for taking profits in the head and shoulders bottom pattern. The stop-loss level should be moved up to the lower support level of 9138.5. This support level coincides with the lower support trend line. If this upward trend support trend line is breached, a stop-loss should be implemented to avoid additional risks.

In the medium-term four-hour candlestick chart of Bitcoin, the previously mentioned large downtrend still holds. After the short-term price rises to the resistance trend line, one should be cautious of the risk of a rebound and decline.

Upper resistance levels
R1 9277.5
R2 9377.5

Lower support levels
S1 9138.5
S2 8862.0

In recent days, the digital currency market has experienced significant fluctuations. Operators are advised to strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses due to volatile market conditions. This article reflects personal opinions, please read with caution, as cryptocurrency trading may pose risks to your capital.

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