Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at any of the three resistance levels which were reached that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken prior to 5 pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,557, $10,421, or $10,351.
- 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.
- Remove 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 $10,833, or $11,023.
- 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.
- Remove 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 long-term buys from support at or below $10,000 looked like the best potential opportunity here. This was a relatively OK call although the low that was made the day of my forecast was a little above $10,000, from where the price has risen over the past few days.
The technical picture is somewhat bullish insofar as the big round number at $10,000 continues to hold and make itself felt as support. However, there is no doubt that we have also seen a sequence of lower major swing lows over the past 10 days or so, which is a sign of a longer-term consolidation.
Overall, I think Bitcoin remains a good long-term buy at $10,000 or at a slightly lower price than $10,000.
There is nothing of high importance scheduled today regarding the USD.