"Jack's Trading Classroom: BTCUSD Bitcoin Long and Short Analysis"

Original Jack's Trading Classroom "BTCUSD Bitcoin Long and Short Analysis"

Starting with a review of our previous analysis article, on March 16, 2020, we published a technical analysis titled "BTCUSD Perspective After the Avalanche-like Drop." In that article, we mentioned:

“Currently, the BTCUSD price is consolidating near the support level of 5227.0 on the weekly chart. Similar to the price action after past sharp rises and falls, we can infer that there will likely be a period of consolidation in this range for some time, and the direction will be determined after the pattern forms.”

Looking at the hourly candlestick chart of BTCUSD, we can see that the price is still consolidating and oscillating. However, it is worth noting that BTCUSD has recently formed a second bottom, presenting a potential double bottom pattern on the chart, with the significant neckline resistance at the high point of 5964.5.

This high point coincides with the resistance of the upper EMA average line. If the upper side successfully breaks through and closes above the high point of 5964.5, we can consider entering with a breakout long position on price retracement, with the stop-loss set at the low point of the right shoulder below. If the high point above cannot be broken through smoothly, it is considered a pattern failure.

This operation is a typical right-side trading, and it is strongly advised not to enter the market prematurely.

Upper resistance levels
R1 6436.0
R2 7190.0
R3 8202.0
R4 9419.0
R5 10315.0

Lower support levels
S1 5227.0
S2 3832.5

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

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

Related Reading

• "Jack's Trading Classroom" Perspective After the Avalanche-like Drop of BTCUSD
• "Jack's Trading Classroom" BTCUSD Bearish Sentiment Continues to Rise

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