"How to Find Support and Resistance Levels for BTCUSD in Jack's Trading Classroom"

In March 02, 2020, we published a technical analysis titled "Bitcoin Trendline Breakthrough". At that time, we mentioned in the article, "The high points continue to weaken and form a downward resistance trendline. After the trendline breakthrough, the bullish trend continues." Subsequently, Bitcoin continued to strengthen, reaching a high point above 52780.0 before a slight pullback to the current price near 49800.0.

Today we will briefly share a few ways to determine support and resistance levels. We are looking at the BTCUSD candlestick chart and using trend lines for analysis. After breaking through the descending resistance level on the chart, the first resistance level is at the previous high of 52185.5 on the trend line.

Next, the point of rise and fall of the trend line is at 58480.0, which is another high point on the trend line and can also be considered a resistance level, or a support and resistance level of the trend line.

Vegas Channel Golden Cross and Death Cross, this strategy is an original technique, not the prototype strategy of Vegas Tunnel Trading Law. It occurs at the transition point of the large cycle, forming strong buying pressure or selling pressure. This transition point is when EMA144, 169 crosses EMA576, 676.

In the upper red circle on the chart, we can see in the 15-minute BTC candlestick chart that the EMA144, 169 moving average channel and EMA576, 676 form a death cross, which indicates a strong selling pressure zone in the future, making it a resistance level of 53300.0.

Similarly, in the lower red circle, a golden cross forms, indicating a strong buying pressure zone in the future, making it a support level of 48180.0.

Lastly, using the familiar Fibonacci sequence to determine the lower support level, we set the high point of 52760.0 as Fibonacci 100 and the low point of 43017.5 as Fibonacci 0. The first support level falls at Fibonacci 61.8, which is 48938.5, and this support level has already been touched earlier.

If it breaks through the previous Fibonacci 100 high point of 52760.0, we can look for upper bullish targets by retracing to the 61.8 support level, such as Fibonacci 127.2-138.2 resistance range, Fibonacci 161.8, and the second support level at Fibonacci 5047889.0.

This support range overlaps with the aforementioned Vegas Tunnel Law Golden Cross zone at 48180.0, which can also be used as a rebound price to find upper breakout targets.

Conclusion

There are many ways to determine support and resistance levels in the market, such as trend lines, indicators, or drawing tools like the Fibonacci sequence. Support and resistance determination is not absolute right or wrong; combining correct pattern analysis and proper risk management is the key to long-term profitability. Good luck with your trading.

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

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