BTC/USD: Higher support at $8,729?
Yesterday’s signals were not triggered, as none of the key support or resistance levels were reached. However, the high and low of the day was close to the levels identified, so they were proven to be quite accurate.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered 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 $8,729, $8,375, or $8,216.
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 $8,995, $9,275, or $9,461.
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 it seemed as though the support at $8,375 would hold, and the line of least resistance looked to be upwards until at least $8,995. This was a good call as the price is up over the past 24 hours and has printed a new higher support level at $8,729.
Recent days have seen the downward move, given impetus by strong risk-off sentiment in the markets, slow down and even halt. We now see bulls well defending the support at $8,375 which bears are holding the $9,000 area. Which direction the price eventually breaks out from this range will determine who is winning. Right now, the bulls have a slight edge, which will persist as long as the new higher support level at $8,729 holds.
I would stand aside for the time being from trading this currency pair except for taking a long trade at a bullish bounce at $8,375.
There is nothing of high importance due today regarding the USD.