BTC/USD: $9,500 area looks very decisive
Last Thursday’s signals may have produced a losing long trade from a bullish bounce at the support level identified at $9,388.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,237 or $9,140.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,462, $9,595, or $9,731.
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 last Thursday that the technical picture remained broadly bearish, but also indecisive.
I saw the best approach as likely to be looking for a short trade only at $9,595, although $9,462 also looked interesting.
However, I also noted that the two support levels below also looked strong.
This was partly a good call, as the price has continued broadly lower, although I was wrong about the support level nearby being strong.
The dominant bearish price channel is still holding the price down and we seem to have arrived at a decisive moment, with the short-term price action at the time of writing rejecting both the horizontal resistance level at $9,462 and the upper trend line of the bearish price channel.
This suggests the moment has arrived for a good short trade entry, if we get a little more momentum into the bearish turn which seems to be developing.
There is nothing of high importance scheduled today regarding the USD.