BTC/USD: New higher support at $4,912
Yesterday’s signals were not triggered, as none of the key levels were reached before 5pm Tokyo time.
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 $4,903, $4,116, $3,807 or $3,000.
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 $5,937.
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 I would take a bearish bias from a bearish reversal following a pullback to the resistance identified at $5,937 which looked like it would act as a very solid resistance level if reached soon. The coronavirus crisis will not end soon and it hard to se risk sentiment improving enough to substantially raise the price of Bitcoin while it lasts.
This call was enough to keep out of trouble but was not particularly accurate as the price has managed to find some support around the $5,000 area. It may be that this area is seen as good value by a lot of long-term buyers with mental anchors located at this kind of price.
Despite the recent supportive price action, I think it is crazy to buy Bitcoin in this panic environment. Risk sentiment surely has further to fall, so I think we are extremely likely to see lower prices in the coming days and weeks. For this reason, I continue to look for short trades from bearish bounces at any resistance levels which are reached.
There is nothing of high importance scheduled today concerning the USD.