"Jack's Trading Classroom: Perspective on BTCUSD after the support trendline is broken"

Original Jack's trading classroom "BTCUSD Support Trend Line Break View"

Starting with a review of our previous analysis article, on March 28, 2020, we published a technical analysis titled "BTCUSD Continues to Consolidate – Watch Out for Short-term Market Reversal Risks." In that article, we mentioned, "The lower boundary of the box can be supported by the daily line level of 6436.0. If the daily line support level of 6436.0 is broken and closed lower, the support trend line will also be broken simultaneously, therefore entering short positions upon a breakthrough would be more reasonable."



Currently, we observe the one-hour candlestick chart of BTCUSD. In the chart, we can see that the bottom of the box mentioned in the analysis from yesterday has been broken, and the support trend line has also been breached, thus meeting the conditions for entering short positions upon a breakthrough.

Earlier, the price dropped to a low of 6060.0, and rebounded slightly to consolidate near the current price of 6180. The original bottom support trend line has been broken. Therefore, we can infer that in the future, BTCUSD is likely to continue weakening on the one-hour or four-hour chart, with the Fibonacci support levels below indicating probable rebound prices. These levels are Fibonacci sequence 38.24972.0 and 61.85739.5. When the price reaches these two levels, attention should be paid to the risk of a rebound to prevent profit loss from short positions.

Resistance levels:
R1 6436.0
R2 7190.0
R3 8089.0
R4 9419.0
R5 10315.0

Support levels:
S1 5227.0
S2 3832.5

In recent days, the cryptocurrency market has experienced significant fluctuations. It is recommended that operators strictly implement risk control measures and avoid high leverage and high contract volumes to prevent additional losses caused by volatile market conditions. This article is a personal opinion, please read with caution, as cryptocurrency trading may pose risks to your capital.

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

Further Reading

• "Jack's Trading Room" BTCUSD Continues to Consolidate – Watch Out for Short-term Market Reversal Risks

• "Jack's Trading Room" BTCUSD Trend Analysis

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