BTC/USD: Price is ranging over the long term
Last Thursday’s signals were not triggered, as there was insufficiently bullish price action when both of the identified support levels were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,162 or $8,004.
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.
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 ride.
Short Trade Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,818, $9,086, $9,173 or $9,600.
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.
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 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 last Thursday that I would be prepared to take either a long trade from a bullish bounce at either support level (near $9,000), or a short trade from a bearish reversal at $9,600 in line with the broader consolidation, without directional bias. None of these trades set up.
The picture now is more bearish, with the price descending over the days, although over the long-term the price of Bitcoin is ranging.
I would be very careful trading this pair today, the action looks tricky and unpredictable with signs that we are going to get a bullish movement over the coming hours.
If the price can get established later above $9,173 that would be a bullish sign.
There is nothing of high importance due today concerning the USD. It is a public holiday in the United States today.