BTC/USD: Pivotal point at $8,682
Yesterday’s signals were not triggered as the bullish price action took place below the support level identified at $8,729.
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 $8,682, $8,375, or $8,216.
Put the stop loss $50 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 bearish price action reversal on the H1 time frame following the next touch of $8,995 or $9,275.
Put the stop loss $50 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 market was ranging between $8,375 and $9,000 with the bulls having a slight edge. I thought it would be wise to stand aside until we got a breakout beyond one or other of those levels and this was a pretty good call as the range has continued to hold.
I would again stand aside for the time being from trading this currency pair except for taking a long trade at a bullish bounce at $8,682, as the bulls still have a very slight edge, but I would keep any long trade from here small.
Markets are generally volatile and unclear, which I think supports my analysis.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time followed by ISM Non-Manufacturing PMI data at 3pm.