"Jack's Trading Classroom: Analysis of the Trend Following the Breakout of BTCUSD's Previous High"

Original Jack's Trading Classroom "BTCUSD Outlook After Breaking Through the Previous High"

Starting with a review of our previous analysis article, on March 18, 2020, we published a technical analysis titled "BTCUSD Bitcoin Long and Short Analysis." In that article, we mentioned: "It is worth noting that BTCUSD has already formed a second bottom, showing a potential double bottom pattern in the chart." We also stated, "If the price successfully breaks through and closes above the high point of 5964.5, we can choose to enter with a breakout long position on a price pullback, with the stop-loss set below the low point of the right shoulder."

Currently, we have switched the chart to a four-hour candlestick chart of BTCUSD. It is clearly visible in the chart that after two bottoms, BTCUSD formed a typical converging pattern as the bottom low points continued to rise.

Similar to the earlier mentioned breakthrough of the high point of 5964.5, the original high point has been surpassed, forming a higher high. We interpret the current trend as an upward trend. BTCUSD rose to a high point of 6440.0, touching the previously mentioned resistance at 6436.0.

This price level coincides with the Fibonacci sequence 127.2-138.2 range of 6390.5-6563.0. Operators should be aware of the rebound risk. If this resistance level is broken, the target price of the double bottom reversal pattern could be seen at the Fibonacci sequence 2007531.0, a level that coincides with the EMA moving average resistance.

Upper resistance levels
R1 7190.0
R2 8202.0
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 that operators strictly adhere to risk management 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 carry risks to your capital.

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

Further Reading

• "Jack's Trading Room" BTCUSD Bitcoin Long and Short Analysis

• "Jack's Trading Room" BTCUSD Perspective After Avalanche-like Decline

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