Bitcoin: Bearish wedge remains supported by $11,112
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $11,112, $11,000 or $10,890.
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 $11,544, $12,804 or $13,176.
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 I saw the major opportunity here as another bullish bounce at $11,112 which would be an attractive long entry opportunity as there is such a strong cluster of support levels at and below that price – I would have taken a bullish bias on Bitcoin if we had gotten this setup later.
The picture is not notably different technically so I would continue to take this approach, but it could be argued that it looks a little more bearish as we now have clear lower resistance formed at $11,544 and the price is contained within a wedge which has both upper and lower trend lines which are descending.
I would take a bullish bias if the price makes a bullish bounce later at $11,112.
Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.