BTC/USD: Support at $9,518 holds again
Yesterday’s signals produced a long trade from the bullish rejection of the support level identified at $9,518 which is in profit at the time of writing.
Today’s BTC/USD Signals
Risk 0.50% 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 $9,518 or $9,117.
Place the stop loss $50 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 $9,844.
Place the stop loss $50 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 I still saw a long trade at a firm bullish bounce from $9,518 as a good trading opportunity, but a short trade from the $10k area if the price gets there and reverses in the coming hours would be just as good – so I took no directional bias for the day.
This was a great call, as it reflected the continuing balance we see between bulls and bears in the price chart below, and the bullish bounce at $9,518.
The dominant descending trend line is confluent with $10k and therefore likely to be strong resistance. On the bullish side, we have very firm buying just above $9,500. This range is likely to continue to hold, but it would make sense to be more bullish if the price can hold up above $10k or break down and hold below $9,500. In the meantime, I put my hope in a long trade from $9,518 to rise to $9,844 at least.
Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.