Yesterday’s signals were not triggered, as there was no bullish price action when any of the support levels were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,136.
- 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 $9,233, $9,400, or $9,462.
- 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 the basic outlook technically was still bullish, so I was still interested in taking a long trade from a bullish bounce at any support level. However, this did not work out well at all, with the price falling sharply to the $9,000 area which also acted as an important inflective low point some days ago. This was caused by the switch in market sentiment from risk-on to risk-off, and a risk-off environment tends to boost the U.S. Dollar and depress the relative value of Bitcoin. This is what is happening now.
Technically, over the long-term, we have seen a relatively bullish picture, yet the bulls have been unable to push the price above the very major psychological level at $10,000. This level has been well-defended by sellers of Bitcoin.
There is no key support level near $9,000 but the area seems to have already acted as support and it does represent a medium-term low. Therefore, we may have already seen a medium-term bullish reversal representing a buying opportunity.
I am prepared to take a short trade if we get a bearish reversal quickly at the first resistance level of $9,233. If alternatively, the price gets established soon above $9,500, it will then become more likely that we have seen a major bullish reversal from $9,000.
There is nothing of high importance scheduled today regarding the USD.