"Jack's Trading Classroom: The Formation of BTCUSD Bitcoin Trends"

Original Jack's trading classroom "Formation of BTCUSD Bitcoin Trends"

In the previous article "BTCUSD Bitcoin Short-term and Medium-term Trend Analysis," we reviewed the symmetrical triangle convergence mentioned in the previous article.

Today, we are looking at the four-hour candlestick chart of Bitcoin. We are expanding the chart cycle to observe the trend on a larger scale. In the black rectangle at the top left corner of the chart, we can see the head and shoulders pattern range that we mentioned from the end of August to early September.

The purpose of revisiting this past analysis is to pay special attention to the neckline range of this pattern, which coincides with the later symmetrical triangle convergence trendline resistance. After the breakout of the top trendline of the symmetrical triangle convergence and the formation of an ascending triangle top horizontal resistance range at this resistance level, the current upward trend is formed.

Therefore, the logic of the past trend analysis can still be maintained. If the price falls below this range, there is a high probability of moving towards the mid-term upward channel trendline. It is advisable to enter long positions again after forming a bottom pattern in the short term. The daily bullish structure mentioned on September 7, 2020, remains intact, and the long-term bullish trend has not been broken. Holding spot positions is a reasonable choice.

Resistance levels:
R1 11579.5
R2 11748.5
Support levels:
S1 11362.0
S2 10990.0
S3 10315.0
S4 9782.0

In recent days, the cryptocurrency market has experienced significant fluctuations. It is recommended that operators strictly adhere to risk control measures 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 involve risks to your capital.