BTC/USD: Still bullish above $10,000
Yesterday’s signals may have produced a losing long trade from a bearish rejection of $10,440.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 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 $10,018, $9,651 or $9,522.
Put 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
Short entry after a bullish price action reversal on the H1 time frame following the next touch of $10,440, $10,921, or $11,112.
Put 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 while I preferred to take a bullish bias, the next step was to see how the price behaved now between $10,440 and $10,018. I thought that a long trade from a solid bounce rejecting $10,018 and ideally $10,000 also was the best opportunity that we can hope for here.
This was not a big deal, the price continued to test the resistance at $10,440 before finally failing and selling off from there on higher volatility, which is a sign that a deeper bearish pullback is now more likely to happen.
I still see long trades from bounces at support levels as the best opportunities to watch out for, especially at $10k, but the technical picture is a little more bearish today. If the price gets established below $10k that would make the picture considerably more bearish and suggest that the bullish trend would be in danger.
Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time.