Bitcoin: Bulls buy at $9,620
Yesterday’s signals were not triggered as there was insufficiently bearish price action at either of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Idea
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,851.
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 $11,561 or $11,808.
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 there are lots of bearish signals, but the price was now close to a stack of key support levels starting at $9,610 and the price had not spent much time below $10,000. This suggests that the price was going to make a either a bullish reversal or begin to consolidate above this area of congested support levels, perhaps aided by buying every time it dips below $10,000. This was a pretty good call as the price bottomed at $9,620 and rose by quite a lot from there before peaking and falling from $11,561. Technically, the medium-term bearish trend lines have been broken, which is a mildly bullish sign.
The pivotal point today is very likely to be $10,851, and if that level holds with a bullish bounce which is strong, I could see the price continuing up to the $12,500 area. I would take a bullish bias in this scenario.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed at 3pm by ISM Non-Manufacturing PMI data.