BTC/USD: Level at $9,150 has flipped to become support
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $9,151 was reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered until 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,151 or $8,748.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,131.
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 would again be ready to a bullish bias once we got two consecutive hourly closes above $9,150 – in fact, $9,200 would be even better and even more strongly bullish.
This was a good call as the price did make this break and has since held up above $9,151 which seems to have become new higher support, which is a bullish sign. However, the price has not really risen at all over the past 24 hours, it has mostly just gone sideways. Despite that, the conditions are ripe for a further rises as there is no resistance until beyond the $10,000 level although of course that level itself might be a barrier.
I would take a bullish bias today once we get two consecutive hourly closes above the recent high price at $9,420. The approach of the next Bitcoin halving date is also probably adding to the bullish conditions.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.