Bitcoin: Bearish descent towards $9,801
Last Thursday’s signals were not triggered, as none of the key levels were reached that day. However, $10,921 capped the next day’s high very precisely.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $9,982 or $9,801.
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 $10,258, $10,448 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 last Thursday that we were now seeing a bullish consolidation with aimless price movement between $10,258 and $10,951. I thought higher prices are likely, but perhaps not during Thursday. This was a good call as it reflected the following day’s bullish movement based on the support level I was looking to at $10,258.
The situation now is more bearish, with the price breaking below support with some momentum. However, I think that the support at $9,801 will hold, at least for a while, so this bearish move is probably mostly played out. On the other hand, I doubt the price will be ready to rise today. Therefore, it would probably be wise to stand aside from this pair today and wait to monitor the situation at the London open tomorrow (Tuesday).
There is nothing of high importance due today regarding the USD.