BTC/USD: Bulls taking control of $10k
Yesterday’s signals were not triggered, as there was no bullish price action at $9,709, and no bearish price action at $10,047.
Today’s BTC/USD Signals
Risk 0.50% 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 $10,047, $9,815, or $9,518.
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 bullish price action reversal on the H1 time frame following the next touch of $10,202 or $10,440.
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 area of support at about $9,500 was starting to look extremely pivotal, although the technical picture overall was starting to look a little more bearish. This was a good call as the price stayed above $9,500 and was able to rise.
We have a strange and seemingly evenly matched technical picture now – there is a descending trend line and new horizontal resistance at about $10,200 but we also see bulls again taking control and successfully buying at the $10k area. So, it seems the price is now within an indecisive range from about $10k to $10,400.
Today it seems appropriate to stand aside on Bitcoin until we get two consecutive hourly closes above $10,400 (which would be bullish) or below $10k (which would be bearish).
If the price can get established above $10,200 that would be a more weakly bullish sign.
Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.