Bitcoin: Possible long-term buying opportunity below $10,000
Last Thursday’s signals were not triggered as the bearish price action took place slightly above $11,726.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Idea
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $9,620, $9,438, $9,236, or $8,893.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $50 in profit by price.
Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,805 or $11,476.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is $50 in profit by price.
Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
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 last Thursday that although the current bearish pullback was relatively deep, but not terminally so, so although it put the bulls in question, the bullish party was not necessarily over yet. Nevertheless, the momentum was bearish. However, I took no directional bias that day and I thought it would be wise to stand aside for at least a day to see how the picture settled.
The price has continued to fall, and the picture is much more bearish. However, the price is now reaching an area below $10,000 where there is a strong bundle of bunched support levels which are likely to prevent a further fall, so we could well see a long-term buying opportunity here.
There is nothing of high importance due today regarding the USD.