Bitcoin: Bulls face major test at $10,913
Last Thursday’s signals were not triggered as there was no bearish price action at any of the three resistance levels given that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,270 or $9,991.
- Put the stop loss 1 pip below the local swing low.
- Move 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 run.
Short Trade Ideas
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,913 or $11,112.
- Put the stop loss 1 pip above the local swing high.
- Move 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 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 last Thursday that the price would probably continue to be bearish as long as the resistance level at $9,903 held. Also, that it would be significant for the price to spend a considerable amount of time below the psychological level of $10,000.
This was a fairly good call as the break below $9,903 did send the price lower, but it recovered quite quickly, so it seems my bearish approach below $10,000 was not such an accurate forecast.
The picture now is less bearish as the price has been slowly struggling upwards over the past few days. However, bulls are going to face a very big test just below $11,000 as we have a confluence of a resistance level and two long-term bearish trend lines which are probably going to be hard to break.
I would take a bearish bias if we get a solid bearish failure to rise higher close to $11,000 today. The more trend lines it rejects at the same time, the better.
If the price can get established above $11,000 today, that would be a significant bullish sign.
There is nothing of high importance due today concerning the USD.