"Jack's Trading Classroom" - Analysis of Potential Head and Shoulders Pattern on BTCUSD

Original Jack's Trading Room "BTCUSD Potential Head and Shoulders Pattern Analysis"

Currently, we are looking at the one-hour candlestick chart of BTCUSD. A potential head and shoulders pattern is forming, with the left shoulder and head already formed at 9630.0 and 9746.5, respectively.

Next, we should pay attention to the subsequent trend after the formation of the right shoulder high at 9613.5. Currently, the neckline of this head and shoulders pattern falls at the support level of 9419.0, analyzed with a bearish layout. If this neckline support at 9419.0 and the trendline below are broken and closed lower, there is room for bearish operations below. Using Fibonacci sequence analysis, with the head high of 9746.5 set as 0 and the low of 9375.0 set as 100, the retracement of the right shoulder price falls at the Fibonacci level of 38.2% at 9044.5. If the low point is broken, it may go down to the Fibonacci support range of 127.2-138.2 at 9233.0-9274.0. It is suggested to take partial profits in this range if the low point is broken, and the remaining positions may target the Fibonacci 200 at 9003.5.

Remember, this layout strategy is for entering on the right side. The head and shoulders pattern operation should enter upon breakout to avoid early entry and additional risks.

Resistance levels above
R1 9695.0

Support levels below
S1 9419.0
S2 9170.0
S3 8862.0
S4 7736.0

In recent days, the digital currency market has experienced significant fluctuations. It is recommended that operators strictly implement risk control measures and avoid high leverage and high contract volume operations to prevent additional losses due to 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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