BTC/USD: Break below $11,400 is technically significant
Yesterday’s signals were not triggered as there was no bullish price action with either of the support levels at $11,484 or $11,400 were reached.
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 $10,696.
- 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 $11,518, $11,657, or $11,924.
- 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 yesterday that although Bitcoin looked relatively weak, I thought that the support level at $11,400 was likely to hold, at least for a while, so I was ready to take a long trade from a bullish bounce there.
This was not a good call as the level at $11,400 broke down, and now there is not only short-term bearish momentum, we also have room to move down with no more support levels below the current price above $10,696.
The price looks likely to fall further and in fact, the direction here seems to be more assured than it does in any major Forex currency pair at present.
Despite Bitcoin’s long-term bullish trend, the outlook for today is certainly bearish.
I would be very happy to see a short.
There is nothing of high importance due today regarding the USD.