BTC/USD: Bulls and bears are evenly matched
Yesterday’s signals were not triggered as none of the key levels were reached over the day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5 pm Tokyo time Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,109 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 $9,284, $9,352, 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 yesterday that the best that could be said was that a sustained break below $9,000 would be a bearish sign, while a sustained break above $9,352 will be a bullish sign. I was still ready to take long trades from firm bounces which might happen at either of the support levels above $9,000.
Unfortunately, the price has continued to barely move, just going sideways on ever-decreasing volatility. However, this can mean that the longer the situation goes on, the more explosive the eventual breakout will be.
I think all that can be done here is wait for the price to either break below $9,000 which would be a bearish sign, or above $9,284, which would be a bullish sign.
Bulls who have faith in the long-term prospects of Bitcoin might be ready to take a long trade from support levels near $9,000, but would probably do better to wait until the price breaks above $10,000 as that is probably what it will take for truly strong bullish momentum to build up here.
Concerning the USD, there will be a release of Retail Sales data at 1:30 pm London time.