BTC/USD: Long-term buyers boost price in 2020
Yesterday’s signals produced a long trade from the bullish bounce at $8,552 which at the time of writing is in a small floating profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,552, $8,375, or $8,216.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,766 or $9,011.
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 price was still bullish as despite the drop, the key support level (which could now be adjusted slightly to $8,552) continued to hold. Therefore, I would still look for bullish trades from bounces at this pivotal area but would see the picture as less bullish overall below it.
This was a good call as the level at $8,552 has continued to hold, but the price is consolidating between there and the resistance just overhead at $8,766 and is being very slow to advance. There is no real change technically from yesterday’s picture.
The situation would be more bearish below $8,552 and more bullish above $8,766. For the time being, I take a weakly bullish bias and would stay in the long trade from the bounce off the support level which happened yesterday around the New York opening time.
There is nothing of high importance due today concerning the USD.