BTC/USD: Risk-off sentiment hammering Bitcoin
Last Thursday’s signals were not triggered, as there was no bearish price action when the resistance level identified at $8,995 was reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,698, $7,477, $7,228, or $7,043.
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 $8,000, $8,216, or $8,375.
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 last Thursday that I was looking to take a bullish bias to at least $9,275 if the price could get established above $9,000 later that day. It did, but the price went sideways for the next day, so this was a neutral or losing call.
The strong increase in risk-off sentiment due to the coronavirus outbreak has hit Bitcoin hard, with the price dropping strongly over the last few days to approach the low made for the year in early January. The price may stabilize for a while, but it is hard to see risk sentiment improving significantly any time soon, so I take a bearish bias here as long as the price remains below $8,000.
There is nothing of high importance due today concerning the USD.