Bitcoin: Bulls testing resistance above $10,000 again
Yesterday’s signals were not triggered as none of the key levels were reached, although the price did get close to $10,192 a few hours ago.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time Friday.
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 $10,192, $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 the price getting more solidly established below $10,000 was is a bearish sign and I was ready to take a weakly bearish bias here until $9,073 if the price would break firmly below $9,500.
This was a good call as the price never broke below $9,500 so it was enough to stay out of trouble here.
The price has recovered and is very close to testing the first key resistance level above $10,000. If the price can continue its recovery and start to move up and get away from this area below $10,000. I think it would be a definite bullish sign.
For now, it is probably best to watch and wait here. A failure to break resistance and another drop back below $10,000 is a very possible and more bearish scenario.
Concerning the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.