BTC/USD: Well supported from $9,000 area
Last Thursday’s signals produced a long trade from the bullish pin candlestick which rejected the support level at $9,014 and made a little profit.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may be entered before 5 pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,109 or $9,011.
- 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,304, $9,400, or $9,462.
- 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 last Thursday that the thing to watch for here really was a bullish bounce at the support near $9,000 which could be a good long-term trade entry if the price finally breaks bullishly above the psychological resistance at about $10,000 which has been a cap for a long time.
This was a good call as the $9,000 area has continued to hold as firm support, although the entry we got that day did not work out.
The technical picture is slowly becoming more bullish every day as long as $9,000 continues to hold. We see the price slowly advancing and new higher support at $9,109.
The thing to watch for now is whether the price will continue to rise and break out above the nearby resistance levels leading up to the psychologically very important area at $10,000.
I will take a bullish bias here if we get two consecutive hourly closes later today above $9,304.
Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3 pm London time.