Bitcoin: Resistance confluence at $10,440 looks strong
Yesterday’s signals were not triggered as there was no bullish price action at $101,68 when it was reached.
Today’s BTC/USD Signals
Risk 0.75% 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 $9,974 or $9,801.
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 Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,440.
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 the technical picture was interesting as it is so evenly balanced over the long term. I saw the major potential opportunity as a short trade taken from a reversal at $10,440 especially if the rejection hits the trend line just above that price at the same time. I think this analysis still holds as the price has not done anything to invalidate it over the past day.
There is support at $10,168 technically, but it looks highly unreliable and very likely to break down.
It may be that the confluence of resistance at about $10,440 has already been felt and that this level will not be hit again soon, but I would definitely want to take a bearish bias if the price gets back up there and firmly rejects that area and starts to move down again.
The two closest support levels below $10,000 are likely to be major obstacles to any serious bearish move, especially $9,800.
There is nothing of high importance due today regarding the USD.