"Jack's Trading Classroom: BTCUSD Head and Shoulders Pattern and Trend Breakout"

Original trading classroom by Jack, "BTCUSD Head and Shoulders Bottom Pattern and Trend Breakthrough"

In the analysis article "Short Commentary on the Trend of BTCUSD Bitcoin" on June 22, 2020, it was mentioned that "if the upper trendline and neckline of the head and shoulders pattern are broken, it can be considered a reversal of the bearish trend."

Currently, we see on the four-hour candlestick chart of BTCUSD, the upper trendline of the downward trend of Bitcoin has been broken earlier, and the neckline range of the head and shoulders pattern at 9528.0 has also been broken, indicating that the future trend will continue to strengthen. The price has reached the 127.2-138.2 range of the head and shoulders pattern at 9789.0-9865.5, and after a short-term rebound, it is likely to continue to strengthen.

Two rebound ranges worth noting are:
1. Support level 9258.0 to Fibonacci 61.8 9548.0
2. Fibonacci 38.2 9397.0

As shown in the chart:

Due to the breakthrough of the neckline range forming a new high, the head and right shoulder also form a support trendline. Therefore, we can judge that a new uptrend has formed. It is more reasonable to operate in a bullish manner in the future, with the target set at the head and shoulders pattern take-profit target, at Fibonacci 200 10297.0.

Upper resistance levels:
R1 9678.5-9755.5 range
R2 10124.0

Lower support levels:
S1 9528.0
S2 9419.0
S3 9170.0
S4 8862.0

In recent days, the volatility in the digital currency market has been relatively large. 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 is personal commentary, please read it carefully, and virtual currency trading may bring risks to your capital.

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