"Jack's Trading Classroom: BTCUSD Short Trend Has Not Changed Yet"

Original trading classroom by Jack, "BTCUSD bearish trend has not changed yet."

In the previous article "How to Judge the Stop-Loss of the BTCUSD Head and Shoulders Bottom Layout" published on July 2, 2020, the head and shoulders bottom pattern mentioned was considered invalid as the right shoulder was broken.

Currently, we can see the one-hour candlestick chart of BTCUSD. In the chart, we can still observe the previously mentioned downtrend, which is still valid, and the price earlier reached a high of 9392.0.

This price level is close to the resistance trend line above the downtrend, so we can enter short positions with higher leverage at this price level, following the downtrend. The key resistance level at 9419.0 on the daily chart above is still valid.

Due to the price nearing the upper resistance trend line, entering a position at this price level can provide a better risk-reward ratio. If the key resistance level at 9419.0 on the daily chart and the upper pressure trend line are broken, short positions should be stopped immediately and switched to long positions upon the trend line breakout.

Upper resistance levels
R1 9277.5
R2 9377.5
R3 9419.0*
R4 9648.0
R5 10124.0

Lower support levels
S1 9138.5
S2 8862.0
S3 8089.0

In recent days, the digital currency market has experienced large fluctuations. 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 a personal opinion. Readers should exercise caution and virtual currency trading may involve risks to your capital.

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