Yesterday’s signals were not triggered, as the bearish price action took place a little way above the resistance level identified at $11,529.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5 pm Tokyo time Friday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $11,185 or $11,023.
- Put the stop loss $50 below the local swing low.
- Adjust 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 ride.
Short Trade Ideas
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $11,539, $11,804, $11,959, or $12,105.
- Put the stop loss $50 above the local swing high.
- Adjust 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 ride.
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 pivotal point now looked to be the new lower resistance level which had printed at $11,529.
I wanted to continue to seek long trades here and would have taken a bullish bias if we had gotten two consecutive hourly closes later above $11,529.
This was a good call as this level was clearly pivotal to within $10 of the specified price. The price rejected the area quickly and moved a bit lower.
The technical picture now is one of consolidation below the new pivotal resistance level which I have drawn at $11,539.
I am again prepared to take a bullish bias in line with the medium-term trend following a second consecutive hourly close today above $11,539 if it sets up.
Market sentiment is somewhat risk-off today, but if that changes, Bitcoin should be able to rise.
Concerning the USD, there will be a release of Unemployment Claims data at 1:30 pm London time.