BTC/USD: Still weak support at $9,014
Last Thursday’s signals produced a profitable short trade entry following the small hourly pin candlestick which rejected the resistance level identified at $9,233.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5 pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,136.
- 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 $9,233, $9,400, or $9,462.
- 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 last Thursday that I was prepared to take a short trade if we had gotten a bearish reversal quickly at the first resistance level of $9,233. This was a great call as we did, and the price fell from there to reach a new low below the key round number at $9,000 which has been acting as rough support.
The technical picture now is certainly more bearish with lower lows and lower highs, but we still see hints of support around and below $9,000 and even a new weak support level at $9,014 although this looks very unconvincing.
I have a bearish outlook on Bitcoin as risk sentiment in the markets deteriorates, and we could see a stronger fall all the way down to the next supportive area near $8,100. I will be happy to take another short trade from a bearish reversal which may happen at any of the resistance levels identified above the current price.
There is nothing of high importance scheduled today regarding the USD.