"Jack's Trading Classroom: BTCUSD four-hour downtrend"

Original trading classroom by Jack, "BTCUSD Four-Hour Downtrend"

BTCUSD Four-Hour Downtrend

On February 19, 2020, we published a technical analysis titled "BTCUSD Head and Shoulders Pattern Long-Short Layout".
After the publication, the price fell back below the bottom support at 9419.0
The low price reached 9267.5
Subsequently, the price rebounded to the current price of 9770.0 and continued to consolidate.

Today, we are looking at the four-hour candlestick chart of BTCUSD.
For users who have been following our analysis,
you may recall our "BTCUSD Daily Chart Short Commentary" published on February 22, 2020.
At that time, we mentioned that "the current pattern is still in the consolidation zone of the handle part, with a large cycle wave band support at '8972.0' - cup high point 10549.5.
It is recommended to switch the market view to smaller time frame charts
In smaller time frames, such as 15 minutes, one hour, and four hours,
look for small trends for short-term trading."
As of today's update, the price is still oscillating between 8972.0-10549.5.
In the shorter term within the four-hour chart,
we see that the high and low points of the BTCUSD price continue to decline,
which can be judged based on the basic pattern.
Both the high and low points are in a declining situation,
we consider this as a basic downtrend.
We recommend operators to follow the basic trend operation method,
as the pattern is analyzed on the four-hour chart,
we suggest taking short positions with low leverage in this range following the trend.
If the upper high point or trend line is broken, exit with a stop loss.
Set profit-taking targets below the support level
and strictly implement risk management.

Upper resistance levels
R1 9785.0
R2 10315.0 key support and resistance levels on the daily chart
Lower support levels
S1 9419.0 key support and resistance levels on the daily chart
S2 9326.0
S3 8973.0* 61.8 on the daily chart
S4 8633.0
S5 8290.0

In recent days, the cryptocurrency market has shown large fluctuations. Operators are advised to 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 for personal reference only. Please exercise caution when trading virtual currencies, as it may involve risks to your capital.

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

Related Reading

• "Jack's Trading Room" BTCUSD Daily Chart Short Commentary
• "Jack's Trading Room" BTCUSD Head and Shoulders Pattern Long-Short Layout

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