BTC/USD: Bullish bounce from support looking likely
Yesterday’s signals were not triggered as none of the key levels were reached during yesterday’s session.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,462, $9,400, or $9,300.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,547 or $9,731.
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 despite the bearish reversal we saw at $9,731, the technical picture had become more bullish, so I preferred a long trade from a bounce at any support level, especially at $9,462.
This was an OK call, although we saw little movement in the price yesterday. However recent hours saw a spike down which appears to have reversed just above the support level at $9,462.
I think the basic outlook technically is still bullish, so I am still interested in taking a long trade from a bullish bounce at any support level. The levels at $9,462 and $9,350 look like especially good candidates, particularly $9,350 as it is confluent with the former resistant descending trend line which is shown in the price chart below.
There is nothing of high importance scheduled today regarding the USD.