Yesterday’s signals were not triggered, as there was insufficiently bearish price action when the resistance level identified at $10,641 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken between 8am and 5pm Tokyo time Friday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $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 $10,641, $10,674, $10,798, $10,847, 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 yesterday that the picture looked a little more bearish, and recent price action suggested that if $10,621 held as resistance, the price was going to travel back down towards $10,000 and the two key support levels down there which remained valid, at $10,421 and $10,351.
The resistance level at $10,621 did not hold but the price was unable to exceed it by much before turning bearish again and making another lower swing high at about $10,674 which has become new resistance. The price is now back below $10,421 also and seems to be heading down.
The big picture still holds – Bitcoin remains an attractive long-term buy close to $10,000 but offers little other opportunity.
I will be happy to take a long trade later from a bullish bounce at either of the two support levels above $10,000.
There is nothing of high importance due today regarding the USD.