BTC/USD: Pivotal point at $9,518
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at any of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Friday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,518 or $9,117.
Place the stop loss $50 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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,815 or $10,047.
Place the stop loss $50 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 yesterday that it seemed appropriate to stand aside on Bitcoin until we got two consecutive hourly closes above $10,400 (which would be bullish) or below $10k (which would be bearish).
This was a relatively good call, as this would have got you into a short trade yesterday at about $250 than the price is at the time of writing.
The picture now is more bearish, with a widening bearish wedge formation dominating the price chart shown below technically.
This strong move down below $10k is a bearish sign, but it is significant that $9,500 has not broken down yet: this is likely to be a very pivotal point.
I will take a very cautious long trade if we get another bullish bounce at $9,518 or if we get an hourly close below $9,500, I will take a bearish bias until the next support level at $9,117.
There is nothing of high importance due today regarding the USD.