Bitcoin: More bearish under $10,000
Yesterday’s signals were not triggered, as there was no bullish price action at either $10,406 or $9,620.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $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 $9,863 $10,366 or $10,585.
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 yesterday the recent bullish move seemed as if it may have run out of steam. I thought that much would now depend upon whether the two nearby support levels held over the forthcoming hours. This was a good call, as the levels broke down under some strong bearish momentum, and the price continued to fall further, before finding at least a short-term bottom now at $9,236.
Now that the price is clearly below $10,000 and showing no signs of being strongly bought by long-term buyers, it seems quite likely that we are now going to see still lower prices. Therefore, I would be prepared to take short trades from bearish failures at any resistance level which is reached today and accordingly a bearish directional bias.
There is nothing of high importance due today concerning the USD.