"Jack's Trading Classroom" Analysis of the Head and Shoulders Pattern on BTCUSD

Original Jack's Trading Classroom "Analysis of the Head and Shoulders Pattern in BTCUSD"

In our analysis article "BTCUSD Short-term Bearish Sentiment on the Rise" on March 1, 2020, we mentioned that the short-term bearish momentum was strong due to the continuous downward trend of the high and low points.

Currently, we see the 15-minute candlestick chart of BTCUSD. In the chart, we can see that the previously mentioned downward trend experienced a false breakout earlier on March 1, 2020, and then on March 2, 2020, the price effectively broke through the resistance trend line and experienced a pullback.

BTCUSD rose to a high of 8970.0, which coincided with the resistance of the upper EMA moving average. What we need to pay attention to next is the formation of a top pattern above the moving average resistance on the 15-minute chart.

In the chart, BTCUSD shows a head and shoulders pattern on the 15-minute chart. After forming the right shoulder at the earlier high of 8890.0, if BTCUSD falls below the bottom trend line forming the neckline, it is suggested to enter a short position with a stop loss at the head of 8970.0, and set the take profit target at the bottom EMA moving average support or use Fibonacci to find the take profit target. It should be noted that if the head of 8970.0 is broken, the pattern is considered invalid.

Resistance levels:
R1 9146.0
R2 9419.0
Support levels:
S1 8807.5
S2 8633.0

In recent days, the cryptocurrency market has shown significant volatility. 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. The article is for personal comments, please refer carefully, as cryptocurrency trading may involve risks to your capital.

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

Related Reading

• "Jack's Trading Room" BTCUSD Still Primarily Bearish
• "Jack's Trading Room" BTCUSD Brief Analysis of Daily Chart

Join Telegram now to get the most accurate blockchain news and cryptocurrency updates!