BTC/USD: Breakout beyond consolidation limit at $9,000
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level identified at $9,125 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,146 or $9,041.
Place 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.
Remove 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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,584 or $10,131.
Place 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.
Remove 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 showed a clear ranging consolidation between $9,000 and the support at $8,162. I was ready to fade failed breakouts at either level or trade the breakout beyond one of the levels. This was a good call as the price broke above $9,000 and the price has continued to advance to reach $500 higher than that.
The technical picture is more bullish now, with a supportive pivotal area established near $9,000. The short-term price action is bullish and suggests that Bitcoin is set to continue rising until it tests the nearest resistance level which is identified at $9,584.
I do not want to take any short trades today unless we get a bearish reversal later above $10,000. I think the price will rise today so below $10,000 I would look to buy this pair on dips.
There is nothing of high importance due today regarding the USD.