BTC/USD: $10k area may still be supportive
Yesterday’s signals were not triggered as there was no bullish price action when the support levels identified at $10,620 and $10,414 were first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5 pm Tokyo time Wednesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,731 or $9,655.
- 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.
- Take off 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 $10,542, $10,620, or $11,460.
- 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.
- Take off 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 had become more bearish as risk-off sentiment seemed to be reasserting itself, with the price seeming likely to move down over the short term towards $10,620.
This was a good call as the price did move down over the day.
Risk-off sentiment strengthened yesterday and that has hurt Bitcoin and boosted the Dollar.
There are no key support levels close by, and the technical picture looks more bearish than bullish. However, as the price is now approaching the big psychological round number at $10,000 which has proven to be very supportive in the recent past, the price may struggle to fall much further. We have seen some initial signs of this in recent hours with the price beginning to consolidate a little way above $10,000.
I see a long-term buy at $10,000 (or at either of the support levels shown below that) as potentially interesting. How the price reacts if and when it reaches $10,000 should tell us something.
Concerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3:30 pm London time.