BTC/USD: Slight bullish bias
Yesterday’s signals produced a long trade from the large bullish candlestick which rejected the support level at $9,109. This trade has gone sideways but still has a chance to turn profitable.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5 pm Tokyo time Thursday.
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 $9,284, $9,352, 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 yesterday that the technical picture remained inconclusive: volatility was very low, and the narrowing, consolidating triangle pattern persisted.
I thought there was little point being bearish above $9,000, but a long trade from a bounce at $9,109 or especially $9,010 would be attractive.
This was a good call, as although resistance was invalidated near to where the price is now, we saw the nearest support level at $9,109 hold and produce a long trade entry.
Unfortunately, there is little to add to yesterday’s analysis. The price remains trapped within this narrowing triangle with a slight bullish bias.
Again, the best that can be said today is that a sustained break below $9,000 will be a bearish sign, while a sustained break above $9,352 will be a bullish sign. I still see value in long trades from firm bounces which might happen at either of the support levels above $9,000.
There is nothing of high importance scheduled today regarding the USD.