BTC/USD: Pivotal point at $8,995
Yesterday’s signals produced a profitable long trade from the bullish rejection of the support level at $8,682. It may be wise to take all profit soon if the price does not get established above $9,000 today.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered 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 $8,852, $8,682, $8,375, or $8,216.
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 $8,995 or $9,275.
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 I would again stand aside for the time being from trading this currency pair except for taking a long trade at a bullish bounce at $8,682, as the bulls still had a very slight edge. This was a great call as the story of the day was the bullish bounce at that level.
Bulls continue to have a slight advantage, bolstered by the new higher support level at $8,852.
The resistance close to $9,000 looks very important now – if the bulls can get the price to convincingly break above this level and hold there, the price looks likely to continue to advance to $9,275 at least. Therefore, I would be prepared to take a long bias if we get two consecutive hourly closes above $9,000 until at least $9,275 but watch out for a bearish failure at the $9,000 as an alternative scenario, which could start a downwards thrust.
There is nothing of high importance due today concerning the USD.