"Jack's Trading Classroom: After the failed retracement of BTCUSD, a triangle convergence pattern will determine the direction."

Currently, we can see the 4-hour candlestick chart of BTCUSD. As mentioned in the previous article "BTCUSD Rebounds to Fibonacci 61.8 Support," the Fibonacci 61.8 range that Bitcoin retraced in the blue rectangular range in the chart has likely failed due to regulatory accusations against the leading derivative exchange Bitmex, affecting the fundamental factors of Bitcoin price in the short term, dropping to a low of 10382.0, with the low point yet to be confirmed.

Within the chart, Bitcoin shows a typical triangular convergence pattern on the 4-hour candlestick chart, with the bottom still in an upward trend and not reversed yet. There is still strong support at 10315.0 below, and the daily trend line is still on an upward trajectory without breaking the red trend line in the chart. Traders may consider the breakout direction of the triangular convergence trend line for better decision-making.

If the bottom support trend line is broken, traders may consider short positions, with a profit-taking target set at 9878.8 at the EMA 200 on the daily chart.

If the upper descending resistance trend line is broken, continue with long positions after the breakout, following the typical triangular convergence trading strategy.

Upper resistance levels:
R1 10990.0
R2 11362.0
R3 11579.5
Lower support levels:
S1 10315.0
S2 9782.0

In recent days, the digital currency market has experienced significant fluctuations. 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 is for personal commentary, please read with caution, as cryptocurrency trading may pose risks to your capital.

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