"Jack's Trading Classroom: BTCUSD Mid-term Top Formation Waiting for Breakout Entry"

Original trading classroom by Jack, "BTCUSD mid-term top pattern waiting for breakthrough entry"

In an article published on August 30, 2020, titled "BTCUSD Bitcoin Double Bottom Pattern Breakout," we mentioned: "The earlier retest of the neckline support was not broken, therefore, on an hourly chart, Bitcoin is likely to continue to strengthen in the future." And it has already perfectly reached our two profit-taking targets of 11661.0-11707.0 and 11964.0.

Currently, we have switched to the four-hour candlestick chart of BTCUSD. After Bitcoin met the profit-taking requirements of the double top pattern on the hourly chart and reached a high of 12074.5, it rebounded, forming a standard head and shoulders pattern on the four-hour chart. The head and shoulders pattern is a standard top pattern, and the entry condition requires waiting for a breakout of the neckline range, with the neckline price at 11111.0.

If the neckline price of 11111.0 is breached, you can enter a short position, with a stop-loss set at the head high of 12491.0 or the right shoulder high of 12074.5. Take the first profit at 127.2-138.2 range of 10584.0-10735.5. If the neckline range is broken before the right shoulder high is breached, this pattern is invalidated.

Remember that the head and shoulders pattern is a right-side trade, so avoid entering the market prematurely before the entry point is established to avoid additional losses.

Upper resistance levels
R1 11579.5
R2 11748.5

Lower support levels
S2 11362.0
S3 10990.0
S4 10315.0

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

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Personal Website: jackbtc.io