Bitcoin: Bearish channel below $10,000
Yesterday’s signals were not triggered as the bullish price action took place slightly below $9,236 and as there was no bearish price action at $9,863.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken prior to 5pm Tokyo time Friday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,236 or $8,893.
Place the stop loss 1 pip 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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,367 or $10,585.
Place the stop loss 1 pip 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 as the price was clearly below $10,000 and showing no signs of being strongly bought by long-term buyers, it seemed quite likely that we were going to see still lower prices. However, the price rose a little over the day, but not by much.
The price chart below shows a clear, symmetrical bearish channel which is currently holding the price down below $10,000. That is likely to be today’s pivotal point as it is now confluent with the top of the bearish price channel. A firm break about that would be a bullish sign and would probably attract long-term buyers. A failure there could be a selling opportunity, and if the price breaks below the channel at about $8,340 that would be an extremely bearish sign.
There is nothing of high importance due today concerning the USD.