BTC/USD: Weakly bullish above support at $9,117
Yesterday’s signals were not triggered as the bullish price action took place slightly below the support level at $9,141.
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 $9,117, $8,802, or $8,683.
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.
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 would expect a deeper bearish retracement if we had gotten a couple of consecutive hourly closes today below the level at $9,141. We did get these closes but unfortunately the price has risen a little from there, so it wasn’t a great call.
The technical picture is basically unchanged, I have just moved the pivotal support level down a little from $9,141 to $9,117. This area of support still looks somewhat pivotal, but perhaps a little less likely to break down now.
I would stand aside from trading this pair as it does not seem to be behaving clearly and decisively, and muddled price action is looking more likely now.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time and ISM Non-Manufacturing PMI data at 3pm.