"Jack's Trading Classroom" BTCUSD Near-Term Trend Analysis

Original Jack's trading classroom "BTCUSD Recent Trend Analysis"

Analysis of BTCUSD Recent Trends

On February 22, 2020, we published a technical analysis titled "BTCUSD Daily Chart Brief Analysis." At that time, we mentioned that "the current pattern is still in the consolidation zone of the handle part (61.8% support of the large cycle wave at '8972.0' - cup top at 10549.5), waiting for a surge in volume after breaking through the top cup edge." On February 24, we published another technical analysis titled "BTCUSD Four-Hour Downtrend," where we also made basic pattern judgments. Both the high and low points were in a downward trend, which we interpreted as a basic downtrend. We suggested that operators follow the basic trend operation methods, focusing on the four-hour chart analysis. We recommended taking short positions with low leverage in this range.

Today, we switch back to the daily chart of BTCUSD. In the daily chart, we can see that the price of BTCUSD is still consolidating within the range of 8972.0-10549.5. Switching to the four-hour candlestick chart of BTCUSD, we can see that the downtrend in the four-hour chart is still valid. The price has dropped below the previously mentioned daily chart support at 9419.0 and the minor cycle support at 9326.0, falling to around 9150.0. Going forward, it is important to monitor the retracement points of BTCUSD in the daily chart, focusing on the same support levels mentioned in the previous article "BTCUSD Classic Bottom Pattern - Cup and Handle Pattern." Continued attention should be paid to the Fibonacci 61.8 level at 8972.0 in the daily chart wave segment. It is well known that the most probable retracement point in a strong trend is around the Fibonacci sequence 61.8. If the price reaches the Fibonacci 61.8 level in the daily chart, we recommend switching to a smaller timeframe, such as the four-hour chart, to look for reasonable reversal patterns for trading. If the price successfully retraces and bounces back, breaking above the previously mentioned cup top at 10549.5, traders can consider entering long positions with lower leverage or spot positions, awaiting a substantial uptrend.

Resistance levels:

R1 9419.0
R2 10315.0
R3 11380.0
R4 11730.0

Support levels:

S1 8972.0 Fibonacci 61.8*
S2 8633.0
S3 8290.0
S4 8089.0
S5 7202.0
S6 6436.0

In recent days, the cryptocurrency market has experienced significant volatility. We recommend that operators strictly implement risk management practices and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, and readers should use caution when considering it. Cryptocurrency trading may pose risks to your capital.

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

Further Reading

• "Jack's Trading Classroom" BTCUSD Four-Hour Downtrend
• "Jack's Trading Classroom" BTCUSD Daily Chart Brief Analysis

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