BTC/USD: Yet strong resistance near $10,000
Yesterday’s signals were not triggered, as there was no bullish price action at $9,587 when it was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,146 or $9,041.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,131 or $10,696.
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 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 looked very attractive over the short term, as there clearly seemed to be selling going on in that area.
I think this was a pretty good call, as the price was unable to even reach $10,000 later but is still mostly holding up above the support which I have adjusted down a little from its previous level at $9,587.
We still have a balance between buying below $9,500 and probable strong resistance at and above $10,000.
The support level near $9,500 look a little weak, so I would change my approach from yesterday to only looking for a long trade at the lower support levels.
Again, I would take either a long from support or a short from resistance today. I see the resistance level above $10,000 as likely to be felt at $10,000 so even if the price gets just as high as that then reverses, I will take a short trade from that reversal.
Regarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm London time.