Bitcoin: Weakly bullish above $10,673
Yesterday’s signals were not triggered, as there was no bearish price action at $10,805.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Wednesday.
Long Trade Idea
Go long at a bullish price action reversal on the H1 time frame following the next touch of $10,406, $9,620, or $9,438.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trade Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,476 or $11,726.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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 although the picture had become much more bearish, the price had reached an area below $10,000 where there was a strong bundle of bunched support levels which were likely to prevent a further fall, so we could well see a long-term buying opportunity here. This was a good call as we say a bullish bounce as soon as the price reached the $10,000 level, with long-term buyers probably stepping in there. The price rose relatively firmly over the succeeding hours, although without especially strong momentum, printing new support levels above $10,000. However, this move seems as if it may have run out of steam. Much will now depend upon whether the two nearby support levels hold over the forthcoming hours. If $10,673 holds today this will be a bullish signal that the price may rise all the way $11,476 soon.
Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time, followed by minor speeches from the Chair of the Federal Reserve at 6pm and FOMC Member Evans at 8:30pm.