Yesterday’s signals were not triggered, as there was no bearish price action at $9,250.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time, over the next 24-hour period.
Long Trades
* Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,238 or $9,003.
* Put the stop loss 1 pip below the local swing low.
* Adjust the stop loss to break even once the trade is $200 in profit by price.
* Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Short Trades
* Short entry after a bullish price action reversal on the H1 time frame following the next touch of $9,438 or $9,620.
* Put the stop loss 1 pip above the local swing high.
* Adjust the stop loss to break even once the trade is $200 in profit by price.
* Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
BTC/USD Analysis
I wrote yesterday that I saw price action as quite evenly balanced between bulls and bears, but that I would have a bearish bias if the price could break convincingly below $9,000. In fact, the $9,000 area saw the low of the day, and the price has continued to advance, printing new higher support at $9,238. However, the price now seems to be established within a small zone where it can be expected to consolidate, so I again have no bias.
Looking at the bigger picture, it is interesting how Bitcoin seems to be becoming just like another Forex currency pair, with relatively low volatility and short-term price movements which are usually very difficult to predict! Something for the Bitcoin enthusiasts to think about.
Regarding the USD, there will be a release of CPI data at 1:30pm London time.