BTC/USD: Supported from the $9,000 / $9,500 area
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,431, $9,316 or $9,063.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,696.
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 saw the best approach as putting faith in this supportive area below $9,000 as likely to be decisive. So, I would not take a bearish bias until we got two consecutive hourly closes below $9,000.
This was a good call, as this cluster of support levels has continued to hold and even to push the price up slightly, yet the price eventually falls again.
It looks as if bulls and bears are going to have a big fight over this $9,000 area. It should be quite easy to see when the bears win, which will be when the price gets established below $9,000. However, it will be much more difficult to tell if the bulls win, although if the price can get established above the lower trend line of the price channel shown in the chart below, that would be some kind of bullish sign.
I see the best approach as looking for a long trade from a bounce at either $9,316 or $9,063.
There is nothing of high importance due today concerning the USD.