"Jack's Trading Classroom" BTCUSD Daily Chart Short Review and Opinion

Jack's trading classroom "BTCUSD Daily Chart Short Commentary Opinion"

If you have been following our market analysis, you must remember the "BTCUSD Classic Bottoming Pattern - Cup and Handle Pattern" we updated on February 18, 2020. In the previous article "BTCUSD Classic Bottoming Pattern - Cup and Handle Pattern," we mentioned that "the cup body and cup bottom have formed perfectly, with the left and right cup edges at the ideal equal height. Currently, it is in the short-term pullback consolidation phase. The best entry point in the cup and handle pattern is a volume breakthrough to new highs at the top. After the breakthrough, we can expect a significant upward movement."

Today, we are looking at the BTCUSD daily chart, and the pattern is still in the consolidation zone of the handle part, with a large cycle wave range from the 61.8 support at "8972.0" to the cup top at 10549.5. We are still waiting for a volume surge after the breakthrough at the top cup edge. The current price range is not yet at our reasonable spot for spot and long-term buying. Most retail traders who have identified this pattern must be wondering how to proceed. Generally, in a large cycle consolidation zone, we recommend avoiding overly frequent spot transactions and focus on smaller time frame charts, such as 15 minutes, one hour, and four hours, to identify small trends for short-term trading. After the breakthrough at the top cup edge, choose spot or low leverage contracts for long-term operations.

There are two price levels we should pay special attention to in this range. These two price levels are the support and resistance levels we have mentioned multiple times before: 9419.0 and 10315.0. These two support and resistance levels are the strongest two daily support and resistance levels in the large cycle wave range from the 61.8 support at "8972.0" to the cup top at 10549.5. When trading, pay special attention to them and use them as references when setting stop-loss and take-profit levels.

Above resistance levels:
R1 10315.0
R2 11380.0
R3 11730.0

Below support levels:
S1 9419.0
S2 8972.0 Fibonacci sequence 61.8*
S3 8633.0
S4 8290.0
S5 8089.0
S6 7202.0
S7 6436.0
S8 5227.0

In recent days, the cryptocurrency market has experienced larger fluctuations. It is recommended that operators strictly implement risk control measures 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" BTCUSD Long and Short Layout of Head and Shoulders Pattern
• "Jack's Trading Classroom" BTCUSD Classic Bottoming Pattern - Cup and Handle Pattern

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