"Jack's Trading Classroom: BTCUSD Daily Chart Long and Short Position Layout"

Original: Jack's Trading Classroom "BTCUSD Daily Chart Long-Short Layout"

Starting with a review of our previous analysis article, on April 25, 2020, we published a technical analysis "BTCUSD Bitcoin Recent Trends." At that time, we mentioned in the article, "Entering long positions with support retracements or continuing to hold long positions on hand for hedging are both good choices. In the future, in line with the previous article's viewpoint, we can optimistically see the Fibonacci sequence target of 138.28098.5."

Currently, we have switched the chart to the daily chart of BTCUSD. Earlier, based on the original uptrend judgment, and entering long positions with breakouts, we have already reached our preset profit-taking target range of 8089.0-8098.5. Subsequently, BTCUSD surged significantly, reaching a high of 9482.5 today. Currently, our main focus is on the daily resistance level of 9419.0, which has been mentioned in many previous analyses as a key support-resistance level.

Looking at the daily chart, the price is currently near the descending resistance trendline and has not yet broken through and closed above the resistance level of 9419.0. Entering long positions at this time is not a reasonable operation.

If the price stabilizes above the upper resistance level of 9419.0, the descending resistance trendline will also be broken. Therefore, it is more reasonable to wait for the price to break and stabilize above the resistance level of 9419.0 before entering long positions. For traders focusing on short positions, it is recommended to switch the chart to a one-hour or four-hour candlestick chart, looking for reversal patterns such as rounded tops, head and shoulders, double tops, etc., and entering short positions when these patterns break out.

Upper resistance levels:
R1 9419.0
R2 10315.0
R3 11380.0
R4 11730.0

Lower support levels:
S1 8089.0
S2 7467.0
S3 7190.0
S4 6436.0
S5 5227.5
S6 3832.5

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that traders strictly implement risk management and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article represents personal opinions, please read with caution, as cryptocurrency trading may pose risks to your capital.

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

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