Bitcoin: More bearish as getting established below $10,000
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 $9,073 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 $10,192, $10, 426 or $10,742.
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 that if the price could stay below $10,000 all day, that would be an important bearish sign, suggesting that the price would continue to fall to at least $9,073 which was the next support level. This was an OK call, as although the price was able to get back above $10,000 during the later part of the New York session, it was not able to hold for long, and recent hours have seen the price get more solidly established below $10,000. This is a bearish sign and I take a weakly bearish bias here until $9,073 if the price will break firmly below $9,500.
We have a more bearish outlook in Bitcoin, and it seems more likely that we have already seen the best of this year’s rally.
There is nothing of high importance due today concerning the USD.