Yesterday’s signals may have produced a profitable short trade from the bearish reversal which took place just a fraction above the resistance level I identified at $10,833.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered before 5 pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $10,557, $10,421, or $10,351.
- 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 $10,841 or $11,023.
- 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 although we have seen the big round number at $10,000 continue to hold and make itself felt as support there is no doubt that we have also seen a sequence of lower major swing lows over the past 10 days or so, which is a sign of a longer-term consolidation.
I saw Bitcoin as still a good long-term buy at $10,000 or at a slightly lower price than $10,000.
This was an OK call as the price has gone sideways over the past day, with the nearest resistance level holding after just a very small readjustment.
The picture remains weakly bullish with the big story being long-term buying at or near the big round number at $10,000.
We have some short-term bearish momentum but a lot of support at or just above the support level identified at $10,557. I will be happy to take a long trade later if we get a bullish bounce as soon as we see a touch of that level.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15 pm London time followed 15 minutes later by Final GDP numbers.