Bitcoin: Bearish below $8,893
Yesterday’s signals produced a short trade from the bearish rejection of the resistance level identified at $8,803 which is still open and in play.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
⦁ Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,458 or $8,102.
⦁ Put 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
⦁ Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,893, $9,094, or $9,233.
⦁ Put 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 picture remained bearish and it looked as if the price would fall further as long as the new lower resistance level at $8,803 holds. This level actually did not hold, and the price is up very slightly over the past 24 hours, but there is really nothing in this small technical change.
The outlook remains bearish: we are well within a symmetrical bearish price channel, with key resistance levels broadly holding. The price action is moving down in convincing swings to make new lows on both the short and medium terms.
I maintain a bearish bias on Bitcoin below $8,893.
Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.