"Jack's Trading Classroom: BTCUSD Resistance Level, Post-Rebound Market Outlook"

Original: Jack's Trading Classroom "BTCUSD Resistance Rebound Market Outlook"

Starting with a review of our previous analysis article, on April 11, 2020, we published a technical analysis titled "BTCUSD Short Commentary after Breaking the Support Trendline." In that article, we mentioned, "It is essential to pay special attention to the Fibonacci sequence levels of 38.2 and 61.8. This resistance level overlaps with the previously mentioned upper resistance range of 7190.0-7202.0, which should be considered an effective resistance zone."

Currently, we continue to observe the four-hour candlestick chart of BTCUSD. Earlier, before the BTCUSD price had not dropped below the initial bottom of 6751.5, the price retraced to the upper previously defined pressure zone of 7190.0-7202.0. The price formed a high at 7194.0 and then dropped to a low of 6551.0, followed by a rebound. The support level at 6627.5 was not breached.

In the future, we still need to pay close attention to the support levels at 6627.5 and 6436.0. Currently, we are still in a medium-term bearish trend. Those with doubts can refer to the previous analysis as the retracement price is at the Fibonacci levels of 38.2 and 61.8, indicating a high probability of a move towards the lower Fibonacci level of 138.2 at 6475.0.

The target price of the Fibonacci level 138.2 at 6475.0 aligns perfectly above the support level of 6436.0. For those holding short positions, it is recommended to consider actions in the range of 6436.0-6475.0, based on return rates, to decide whether to close positions or set stop losses. For those primarily in long positions, it is advisable to wait for a bullish trend to appear before entering the market.

Upper resistance levels
R1 7190.0
R2 7467.0
Lower support levels
S1 6627.5
S2 6436.0
S3 5898.5
S4 5388.5

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that traders strictly implement risk management and avoid high leverage and high contract volumes to prevent additional losses caused by volatile market conditions. This article represents personal opinions, please consider it carefully, as cryptocurrency trading may carry risks to your capital.

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

Further Reading

• "Jack's Trading Room" BTCUSD Short Commentary after Breaking the Support Trendline
• "Jack's Trading Room" BTCUSD Analysis of Another Trend – Rising Wedge Pattern

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