Bitcoin: Stabilizing around $10,000?
Last Thursday’s signals were not triggered as there was no appropriate price action at either of the support or resistance levels which were reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,002 or $9,073.
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 $10,742, $11,485 or $11,726.
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 the price had become established within a bearish price channel, and the pivotal limits of this were likely to be at $10,000 on top and $8,340 at bottom. This was not a bad call, as the price broke up above $10,000 and has more or less held up since then, although the only real movement over the past 24 hours has been sideways. The bullish impulse seems to have worn off now, with the printing of new lower resistance at $10,742. If this level holds then we are likely to see a fall back to the $10,000 area which is very likely to be key support. Beyond this, I have no directional bias, but it is still notable that buyers are stepping in each time the price gets below $10,000.
There is nothing of high importance due today concerning the USD.