"Jack's Trading Classroom" Bitcoin trend line breakthrough

History doesn't repeat itself, but it often rhymes.

Currently, we are looking at the 4-hour candlestick chart of BTCUSD. The left chart shows the current 4-hour candlestick chart of Bitcoin, while the right chart shows the 4-hour candlestick chart of Bitcoin from January. We can easily identify the similarities between the two charts.

After forming peaks at 42097.0 and 58500.0 on January 8 and February 22, respectively, Bitcoin exhibited a pattern of lower highs. The highs continued to weaken and formed a descending resistance trendline. Following the breakout of the trendline, the bullish momentum continued.

Based on indicators, during the subsequent declines after these two peaks, exits were made based on the EMA144 and EMA169 forming the Vegas Tunnel, and the EMA12 crossed below the support moving average channel at the end of the trendline. However, it is noticeable that both pullbacks came to the support moving average EMA200 in the 4-hour cycle.

During the decline in January, after reaching the EMA200 support moving average, a golden cross occurred between EMA15 and EMA50, leading to a bullish trend continuation. Currently, the 4-hour candlestick chart of Bitcoin has not shown a golden cross between EMA15 and EMA50. Once the moving averages cross paths, the trend is likely to align with the trendline analysis, indicating a continuation of the bullish trend.

There are several resistance levels to watch out for in the future. The 52000 resistance zone above presents a possibility of a rebound. When trading based on trendlines, it is essential to be cautious of the rebound risk at the trendline starting point of 58500.0.

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that traders strictly adhere to risk management practices and avoid high leverage and high contract volumes to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, and readers are advised to use caution when considering the information provided. Cryptocurrency trading may pose risks to your capital.

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