BTC/USD: Support at $11,400 looks strong
Last Thursday’s signals were not triggered, as there was no appropriate bullish price action when the support level at $11,649 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades can 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 $11,484 or $11,400.
- Place 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $11,924, $12,105, or $12,208.
- Place 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 last Thursday that I was prepared to take a long trade from a bullish bounce at $11,649 if it happened over the next day, but I would try to be relatively conservative with profit targets as the two nearest resistance levels looked likely to be strong.
That level held for a few hours before breaking down, but the price eventually bounced back.
We are left with a much less clear technical picture. There is some short-term bullish momentum, but it looks likely that this will fade out completed as the price gets close to the $12,000 area which should be resistant.
I will stand aside from trading Bitcoin for the time being until the price breaks out of the $12,000 to $11,400 area. I will be more enthusiastic about a bullish break than a bearish one due to the long-term bullish trend.
There is nothing of high importance due today regarding the USD.