Bitcoin: Bearish consolidation below $10,500
Yesterday’s signals produced a short trade from the bearish reversal at $10,448. This traded would be in a small floating profit now and it would probably be wise to close it as soon as possible.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must 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 $9,982 or $9,801.
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 $10,476 or $10,921.
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 situation here had become more bearish, with the price breaking below support with some momentum. However, I thought that the support at $9,801 would hold, at least for a while, so this bearish move was probably mostly played out. I wanted to stand aside for a day. This was a good call as the price has not moved directionally by much.
We now have a bearish consolidation between $9,982 and the $10,500 area. I would be prepared to take a weak bearish bias if we get a bearish rejection following a retracement to $10,476 later today, targeting $9,982 as profit.
Despite my weak bearish bias, I still see $9,982 as quite likely to hold as support, and the level at $9,801 as very likely to continue to hold as support if reached.
There is nothing of high importance due today regarding the USD.