Jack's Trading Room | BTCUSD focuses on retracing to the daily moving average support channel

We have published two technical analyses on April 28 and May 10, 2021, respectively: "BTCUSD Institutional Order Principles (Concept)" and "BTCUSD Buying Conditions in Different Time Zones."

On April 28 and May 10, 2021, we published two technical analyses: "BTCUSD Institutional Order Principles Concept" and "BTCUSD Buy Conditions in Different Time Zones."

The buy conditions for institutional orders on the daily cycle that were mentioned at the time were "4-hour head and shoulders pattern" and "12-hour Vegas tunnel buy conditions being met" for entering long positions.

Before Bitcoin's price fell to a low of 45805.0, traders should have followed the previous strategies to set stop losses for trade consistency and to avoid holding positions.

Today, looking at the daily chart of BTCUSD, we can clearly see that Bitcoin has retraced to the support channel formed by the EMA144 and EMA169 on the daily cycle.

Earlier, in the technical analysis article published on April 23, 2021, "BTCUSD Second Spot Entry Conditions in the Daily Chart of this Bull Market," we discussed how to enter spot positions using the Vegas tunnel trading method during a bull market. At the time of the article, the EMA144 and EMA169 support channels were around 41778-44252.

As time has passed, this support channel has risen to the current range of 44607-46909. Currently, traders should exercise patience as Bitcoin's price has retraced to the daily moving average support channel.

Once the price is above the EMA12 filter line on the daily chart, spot buying can be considered, with the condition that the EMA12 filter line does not cross below the support average. The stop-loss point is tentatively set at the previous low of 45805.0, and if the low point is adjusted downward, the stop-loss point should be adjusted accordingly.

If this daily cycle buy condition is met, it will be the second spot entry opportunity in this bull market. Strict risk management strategies should be followed. Wishing you successful trading.

In recent days, the digital currency market has experienced significant fluctuations. It is recommended that traders strictly follow risk management practices and avoid high leverage and high contract volumes to prevent additional losses due to volatile market conditions. This article reflects personal opinions, please read with caution, as cryptocurrency trading may involve risks to your capital.

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