"Jack's Trading Classroom: BTCUSD Downward Trend Breakout Market Analysis"

Original: Jack's trading classroom "BTCUSD outlook after breaking the uptrend"

In the beginning, let's review the analysis article we published earlier. On May 22, 2020, we published a technical analysis titled "BTCUSD Support Trendline - Pay Attention to Rebound Risk." At that time, in the article, we mentioned:

"The stop-loss can be set below the Fibonacci sequence 38.28806.5. If it falls below, it should be stopped out decisively to avoid holding positions."

Currently, we see the four-hour candlestick chart of BTCUSD. After the article was published, BTCUSD was slightly rebounded to 9306.5 from the trendline, forming a high point. Subsequently, BTCUSD formed a double top pattern in a smaller cycle as shown in the shaded area in the chart, and the price fell below the neckline and then broke the original uptrend line, continuing to decline to 8614.0 forming a low point.

As the original uptrend has been broken, and the upper retracement price fell at Fibonacci sequence 61.89249.5, and broke the low point of 8801.5. In the future, it can be optimistic to see the Fibonacci sequence 161.88077.0. This target price overlaps with the previously mentioned support level of 8089.0, which can be considered as a short to medium-term bearish target.

The Fibonacci range 127.2-138.28353.5-8482.5 is the high probability rebound range. Short positions should be cautious of rebound risks. It is recommended that operators currently belong to a bearish pattern. Before the bottom pattern is established, it is more reasonable to focus on short positions. This wave is a large-cycle wave, so operations with excessively high leverage should be avoided.

Upper resistance levels
R1 9419.0
R2 10315.0
R3 11380.0
R4 11730.0

Lower support levels
S1 8089.0
S2 7467.0
S3 7190.0
S4 6436.0
S5 5227.5
S6 3832.5

In recent days, the digital currency market has experienced larger fluctuations. It is recommended that operators strictly implement risk control measures and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is a personal opinion. Readers should refer carefully. Cryptocurrency trading may pose risks to your capital.

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