BTC/USD: Support effectively holding
Yesterday’s signals were not triggered as the bullish price action took place a little way below the support level identified at $9,233.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 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 $9,190, $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 $9,400, $9,462, or $9,547.
- 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 bulls should not be worried at all as long as the support level at $9,233 continues to hold. However, action in Bitcoin was going to be relatively quiet until we get the long-awaited breakout beyond $10,000.
The price actually did break below $9,233 for a while before rising again.
The bullish wedge pattern continues, and the technical picture remains bullish but muted. Bulls really need to get the price beyond $10,000 for a major bullish breakout.
I remain basically bullish here and I am happy to take a long trade from a bullish bounce which may set up later from any of the support levels above $9,000.
The problem for bulls is that resistance levels below $10,000 which still exist have shows an ability to keep holding. As Bitcoin is prone to explosive price movements, waiting for a breakout beyond $10,000 instead of getting in at support levels above $9,000 may save you a few losses.
There is nothing of high importance scheduled today regarding the USD.