"Jack's Trading Classroom: Assessing the Head and Shoulders Pattern for BTCUSD"

Original Jack's trading classroom "Judgment of the BTCUSD Head and Shoulders Bottom Pattern"

On June 16, 2020, we published a technical analysis titled "BTCUSD Mid-term Downtrend View." In the article, we mentioned that the current four-hour trend is in a downward trend, and the overall direction should focus on short positions.

Today, we observed the one-hour candlestick chart of BTCUSD, showing a smaller cycle head and shoulders pattern. Experienced traders know that the typical head and shoulders pattern should enter the market upon breaking the neckline position, with the take-profit distance calculated from the neckline position. Taking a 1:1 distance from the neckline to the head, but currently, the Bitcoin price is still within the marked four-hour downtrend on the chart, with strong chip pressure in the range of 9678.5-9755.5 above.

If the neckline pressure at 9528.0 is broken, it is recommended that operators do not rush to enter long positions. Instead, they should rationally wait for the breakthrough of the large cycle trend line and stand above 9678.5-9755.5 before considering long positions more reasonably.

Resistance levels above
R1 9528.0
R2 9678.5-9755.5 range
R3 10124.0

Support levels below
S1 9419.0
S2 9170.0
S3 8862.0

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

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