BTC/USD: Yet strong resistance near $10,000
Last Thursday’s signals were not triggered as there was no bearish price action when resistance was reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,587, $9,146, or $9,041.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,131 or $10,696.
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 the technical picture was bullish, and that Bitcoin was set to continue rising until at least $9,584 and maybe even $10,000.
This was a good call as the price went on to trade above $9,930 before turning around and falling later that day.
Despite that pullback, the technical picture is still bullish, in fact even more so, as the support level identified at $9,146 held up and the price action has recently printed even higher support, at $9,587. However, it is notable that the price keeps turning bearish before it can quite reach $10,000 which is a big round number for Bitcoin.
I would be happy to take a long trade at $9,587 if we get a bullish bounce there later today, but a short trade from a bearish reversal between $10,000 and $10,130 looks very attractive over the short term, as there clearly seems to be selling going on in that area.
There is nothing of high importance due today regarding the USD.