BTC/USD: Pivotal point remains at $9,518
Last Thursday’s signals were not triggered as unfortunately, the bullish price action took place slightly below the support level I had identified t $9,518.
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 after a bullish price action reversal on the H1 time frame following the next touch of $9,518 or $9,117.
Put the stop loss $50 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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,815 or $10,047 or $10,297.
Put the stop loss $50 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 last Thursday that the recent strong move down below $10k was a bearish sign, but it was significant that $9,500 has not broken down yet.
I was ready to take a very cautious long trade if we had gotten another bullish bounce at $9,518. This didn’t happen precisely enough, but I was correct overall to look for a long trade in this area.
The technical picture here is now more evenly balanced, with bulls still buying just above $9,500 but bears are pushing down the price from the dominant descending trend line which is shown in the price chart below.
I still see a long trade at a firm bullish bounce from $9,518 as a good trading opportunity, but a short trade from the $10k area if the price gets there and reverses in the coming hours would be just as good – so I am taking no directional bias today.
There is nothing of high importance due today regarding the USD.