Bitcoin: Bearish trend line holds
Last Thursday’s signals were not triggered as there was no bearish price action at either of the key levels that were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 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 $9,801 or $9,073.
Place 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 $10,062 or $10,440.
Place 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 a short trade from $9,974 looked attractive if a bearish rejection of that level set up later, and I was ready to take a bearish bias if that trade opportunity had presented itself. We did not get that set up, but we did see the price reject the major bearish trend line almost to the pip and sell off quite strongly from there.
The price chart below is dominated by the long-term bearish trend line which is suppressing the price. However, the strong support at $9,801 continues to hold. I would take a bearish bias later if get two consecutive hourly closes below that level later today, as the larger technical picture is suggesting a breakdown, but watch out for buying at the inflection levels below that.
There is nothing of high importance due today concerning the USD.