Bitcoin: Bulls buy at $9,620
Yesterday’s signals were not triggered as there was insufficiently bearish price action at either of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Idea
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Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,851.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is $50 in profit by price.
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Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $11,561 or $11,808.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is $50 in profit by price.
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Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
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 there are lots of bearish signals, but the price was now close to a stack of key support levels starting at $9,610 and the price had not spent much time below $10,000. This suggests that the price was going to make a either a bullish reversal or begin to consolidate above this area of congested support levels, perhaps aided by buying every time it dips below $10,000. This was a pretty good call as the price bottomed at $9,620 and rose by quite a lot from there before peaking and falling from $11,561. Technically, the medium-term bearish trend lines have been broken, which is a mildly bullish sign.
The pivotal point today is very likely to be $10,851, and if that level holds with a bullish bounce which is strong, I could see the price continuing up to the $12,500 area. I would take a bullish bias in this scenario.Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed at 3pm by ISM Non-Manufacturing PMI data.
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Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.