BTC/USD: Bulls and bears evenly matched within narrowing triangle
Last Thursday’s signals gave a losing long trade from $9,190 but then a profitable long trade from $9,109. It may be wise to exit any remainder of the second trade which might still be open unless you are really in it for the long-term.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 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 $9,190, $9,109 or $9,011.
- 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 $9,352, $9,462, or $9,547.
- 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 we were currently seeing an inability for bulls to break up above the nearest resistance level at $9,462. A deeper bearish retracement from here would therefore not be a surprise.
This was a good call, as the bulls were unable to advance, and the price fell all the way to the $9,100 area.
The technical picture has become less bullish, and we now see bulls and bears very evenly matched over the short-term due to the narrowing triangle shown in the price chart below.
Over the longer-term, the price is just consolidating above $9,100 and bulls really need to see the price advance beyond the huge psychological round number at $10,000 before getting excited.
I will take a cautiously bullish bias today if we get two consecutive hourly closes later above $9,352.
There is nothing of high importance scheduled today regarding the USD.