BTC/USD: Bears still holding price below $9,200
Yesterday’s signals produced a losing long trade from the bullish candlestick which rejected the support level identified at $8,992 during the first half of yesterday’s London session.
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 $8,748 or $8,375.
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 Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,151.
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 there are both bullish and bearish developments happening here, with bulls breaking the descending trend line, but bears still holding the price below the strong resistance level at $9,150. Therefore, I was waiting for two consecutive hourly closes above $9,150 in order to take a bullish bias here. This never happened, with the price not even touching $9,150 yet, but the price is still acting quite bullishly even though yesterday’s nearest support level at $8,992 has been invalidated.
This means that the same approach will make sense again today: taking a bullish bias once we get two consecutive hourly closes above $9,150 – in fact, $9,200 would be even better and even more strongly bullish.
I would want to see the price get established below $8,748 before looking to take any short trades.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time.