BTC/USD: Support at $11,649 looks strong
Yesterday’s signals were not triggered as the bullish price action took place just below the support level identified at $11,659.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $11,649 or $11,400.
- Put 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 $11,924 or $12,105.
- Put 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 although we had seen a fairly deep bearish retracement, the support level at $11,659 has held and looked strong. I was prepared to take a bullish bias from another bounce at this level.
This was a pretty good call as the level broadly held although not precisely enough to produce a long trade signal.
The price has still not moved up from that area significantly, but the length of time this area of support has held for is now long enough to suggest an upwards move is becoming likely to happen next.
Therefore, I am prepared to take a long trade from a bullish bounce at $11,649 if it happens over the next day, but I will try to be relatively conservative with profit targets as the two nearest resistance levels look likely to be strong, and will probably hold the price down over the near term.
There is nothing of high importance due today regarding the USD.