BTC/USD: Yet strong resistance near $10,000
Yesterday’s signals were not triggered, as neither of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Thursday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,476, $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 yesterday that would look for a long trade at the lower support levels closer to $9,000.
I also thought that the resistance level above $10,000 was likely to be felt at $10,000 so even if the price got just as high as that then reversed, I would have taken a short trade from that reversal.
This was enough to keep out of trouble but as it turned out, the support at $9,476 is looking firmer now and the recent price action more bullish, so we have a slightly more bullish technical picture today. The short-term pattern is consolidative.
I would be very happy to take a long trade from a bullish bounce following a retracement to $9,476 if that happens before $10,000 is reached. Alternatively, if the price goes up first to trade between $10,000 and $10,131 and makes a bearish reversal, I would be happy to take a short trade from there as it is such a big level psychologically for Bitcoin.
Regarding the USD, the Chair of the Federal Reserve will be testifying before the Senate at 3pm London time.