BTC/USD: Pivotal point at $9,518
Yesterday’s signals produced a long trade from the bullish bounce at $9,522.
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 $9,709, $9,518, or $9,117.
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 bullish price action reversal on the H1 time frame following the next touch of $10,047 or $10,440.
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 bulls and bears seemed evenly matched but there was still good reason to be interested in long trades from any bullish bounces at support levels.
However, I also thought that if the price could remain below $10k for a while that would be a bearish sign.
I was correct to mention taking a trade from a bounce at support, as the bounce at $9,522 paid off even if only by a relatively small amount of profit.
The picture technically is more bearish, with the price staying below $10k and also continuing to make a series of lower highs over the medium term. However, there is still a chance that either of the nearby support levels will hold.
The area of support at about $9,500 is starting to look extremely pivotal. I will take a long trade here if we get another bullish bounce there, but if the price can close below $9,500 for two consecutive hours today, that would be a bearish sign and the price would probably then fall further.
There is nothing of high importance due today regarding the USD.