"Jack's Trading Classroom" Short Commentary on BTCUSD Price Falling Below Ten Thousand Points

Original trading classroom content by Jack

Short Commentary on BTCUSD Price Falling Below Ten Thousand Points

On February 13, 2020, we published a technical analysis titled "BTCUSD Mid-Term Bullish Trend Not Reversed Yet."

At that time, we mentioned in the article:

"Currently, the uptrend structure of BTCUSD on the four-hour chart remains perfect.

The previous low and the support trendline below have not been broken.

Therefore, we judge that the trend has not reversed."

Currently, we are looking at the BTCUSD four-hour candlestick chart.

In the chart, we can see that

Yesterday, a smaller bearish reversal pattern was formed in the BTCUSD candlestick chart.

The reversal pattern formed yesterday is a double top pattern.

The neckline range is approximately between 10085-10118.0.

After the double top reversal pattern was formed,

The neckline range was successfully broken through, and the price returned to the support level near 9813.0 as mentioned earlier.

Subsequently, the candle body could not close below the support level of 9813.0, resulting in a rebound

The current price is around 9975.0.

After the formation of the reversal pattern, retail investors must be very confused

"Should we start to short in the long term?"

When in doubt,

I suggest recalling the uptrend we mentioned in previous articles.

In the four-hour and daily charts,

The uptrend of BTCUSD has not reversed yet,

The trendline and previous lows in the chart have not been broken,

The elements for trend reversal are not in place yet,

And there are still bullish targets to be reached above.

It is recommended to continue with trend-following long positions before the trend reverses,

Short positions can also be used in small cycle reversals,

As traders, we do not need to guess the direction,

What we should do is to operate based on the current form to judge the most probable future trend,

And use a good risk management strategy

To minimize losses caused by low probability unexpected trends.

Resistance levels above

R1 10315.0

Support levels below

S1 9813.0

S2 9419.0 Daily cycle structure support level, should be particularly noted

S3 8660.5

S4 8299.5

S5 8089.0 Daily cycle support level, should be particularly noted

WeChat Official Account: Jack's Trading Classroom

Personal website: jackbtc.io

Related Readings

• "Jack's Trading Classroom" BTCUSD Mid-Term Bullish Trend Not Reversed Yet
• "Jack's Trading Classroom" BTCUSD Continues to be Bullish After Breaking the Ten Thousand Points Mark Again

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