BTC/USD: Bears beware buying from $10k area
Yesterday’s signals were not triggered, as unfortunately the resistance level at $10,557 was never quite reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm Tokyo time Friday.
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 $10,351, $10,557, $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 situation was a little less bearish than it was yesterday, but the price may well still fall. I saw a long-term buy at $10,000 (or at either of the support levels shown below that) as remaining interesting. How the price reacts if and when it reaches $10,000 should tell us something.
I will again take the same approach today, as although the technical picture is a little more bearish after new lower resistance printed at $10,351 from where the price is falling gently over the short-term, I still am concerned that selling this close to $10,000 simply will not leave much room for likely profit. The last time the price tested the $10,000 area it was firmly supported, so there is a good chance this will happen again.
Long-term buys from support at or below $10,000 look like the best potential opportunity here.
Concerning the USD, the Chair of the Federal Reserve and the Treasury Secretary will be testifying before Congress at 3pm London time.