BTC/USD: Yet short-term bullish trend
Yesterday’s signals may have generated a short trade from the hourly doji candlestick which rejected the resistance level at $9,595. This is at about break even at the time of writing and it might be a good idea to exit for break even or a very small loss.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,388 or $9,140.
- 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 $9,595 or $9,731.
- 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 yesterday that as the price was quite near the top of the bearish channel (shown in the chart below), I was interested in a short trade from a bearish reversal at the pivotal area around $9,731.
I also thought that if the price could get established above $9,750 that would be a bullish sign.
Not only were none of these levels reached, the closer support and resistance levels I was watching held too.
Overall, this means that there has been no change at all to the technical picture, so I apply exactly the same analysis today.
A breakdown below $9,388 will be a minor bearish sign, and a break above $9,596 will suggest that the price should continue to rise to reach $9,731 soon.
The most exciting potential opportunity remains a short trade from a bearish reversal at $9,731. If the price can get established above that level, this triggers a bullish signal.
Regarding the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time.