Bitcoin: Bearish trend line pushed price down
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at either of the key support levels which were reached over the past day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered 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 $9,991 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 $10,270, $10,562, or $10,921.
- 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 the picture had become more bearish, and we may well be seeing the start of a major move down. However, bears needed to watch out for the support at $10,642 and possibly at $10,500 as well. This was a great call as the major move down has continued to push the price to lower levels, but there was initially some support around the $10,500 as I had warned.
The picture now is more bearish, and it looks as if $9,991 is going to be today’s pivotal point. If that level breaks down, we could see a strong and sharp fall to the $9,000 area, so I would take a bearish bias today if we see some meaningful bearish momentum upon the break, at least to the next support level just above $9,000.
Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.