Bitcoin: Bearish below $8,803
Yesterday’s signals were not triggered, as there was no bullish price action when the support level identified at $8,711 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
⦁ Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,458 or $8,102.
⦁ Place 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
⦁ Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,803, $8,893, $9,094, or $9,233.
⦁ Place 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 technical picture had become more bearish, and we saw a symmetrical bearish price channel getting established. Therefore, a short trade from a bearish rejection of $9,233 would look very attractive if it had set up. The two lower resistance levels could also be interesting for shorts. If the price could break below $8,711 and stay there for a couple of hours, the picture would look even more bearish.
These were good calls as although there was little movement over the day, the picture remains bearish and it looks as if the price will fall further as long as the new lower resistance level at $8,803 holds. I would take a bearish bias if we get a firm bearish rejection at that level today.
There is nothing of high importance due today concerning the USD.