Bitcoin: Bears look to be breaking down $10,000
Yesterday’s signals were not triggered, as there was no bullish price action at $10,002 when the level was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073 or $8,893.
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 $10,426, $10,426 or $10,742.
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 if the new lower resistance level at $10,742 held then we were likely to see a fall back to the $10,000 area which was very likely to be key support. This was a great call as after struggling to even reach $10,742 the price turned clearly bearish and the bearish action is now seeing Bitcoin trade below the important psychological round number at $10,000. If the price can stay below this level all day, that will be an important bearish sign, suggesting that the price will continue to fall to at least $9,073 which is the next support level.
There is nothing of high importance due today concerning the USD.