"Jack's Trading Classroom: Caution advised when BTCUSD trend line is broken"

Original trading classroom by Jack, "Caution in Trading BTCUSD Trend Line Breakout"

Starting by reviewing our previous analysis article, on April 15, 2020, we published a technical analysis titled "BTCUSD Bearish Trend Analysis." At that time, we mentioned in the article: "On the four-hour chart, BTCUSD broke below the previously mentioned rising wedge, with both the low and high points continuing to decline on the four-hour chart."

Currently looking at the one-hour candlestick chart of BTCUSD, earlier the price of BTCUSD has surpassed the descending trend mentioned in the previous analysis article. Before breaking above the resistance trendline, the price of BTCUSD formed a double bottom pattern twice.

After breaking the resistance trendline, the resistance structure high point of the double bottom pattern at 6986.5 was also broken, with the neckline high point of the double bottom pattern being broken, combined with breaking the resistance trendline of the downward trend.

In the chart, we can see the EMA exponential moving average lines, with the smaller EMA crossing upwards earlier and diverging upwards, forming a typical bullish arrangement.

Therefore, in the current one-hour and four-hour charts, we should operate with a bullish trend, as the price has bounced off the upper resistance level of 7190.0 earlier.

In the future, one can enter long positions within the retracement neckline range, or choose to enter by breaking through the resistance range of 7190.0-7202.0, with profit-taking and stop-loss targets mainly set based on upper resistance and lower support levels.

Upper resistance levels
R1 7190.0
R2 7467.0

Lower support levels
S1 6627.5
S2 6436.0
S3 5898.5
S4 5388.5

Recently, the digital currency market has been volatile, and it is recommended for operators to strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, please refer cautiously, as cryptocurrency trading may pose risks to your capital.

WeChat Official Account: Jack's Trading Classroom
Personal website: jackbtc.io

Related Readings

• "Jack's Trading Classroom" BTCUSD Bearish Trend Analysis
• "Jack's Trading Classroom" BTCUSD Resistance Rebound Market Outlook

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