BTC/USD: Support at $9,518 finally breaks down
Yesterday’s signals were not triggered as unfortunately the price was just $3 short of hitting the resistance level identified at $9.844.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,802 or $8,683.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,460.
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 yesterday that despite the dominant descending trend line confluent with $10k which was likely to be strong resistance, we had very firm buying just above $9,500. Therefore, I put my hope in a long trade from $9,518 to rise to $9,844 at least. I was wrong and should have paid more attention to the fact that Bitcoin tends to do badly in risk-off market environments such as we have very clearly at the moment with stock markets falling strongly.
The break below the $9,500 area of former support plus the fact that key resistance areas continue to hold are bearish signs, in addition to the medium-term descending trend line which dominates the price chart technically, so I am comfortable taking a short trade bias from a bearish reversal at any resistance level reached today, or even $9,250.
There is nothing of high importance due today regarding the USD.