BTC/USD: Yet strong bearish reversal from $9,731
Yesterday’s signals were not triggered as there was insufficiently bearish price action at each of the resistance levels which were hit.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,547, $9,462, or $9,238.
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 Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $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 we seemed to have arrived at a decisive moment, with the short-term price action rejecting both the horizontal resistance level at $9,462 and the upper trend line of the bearish price channel.
I was looking for a short trade there if the bearish momentum increased – however it did not, so my call was enough to keep out of trouble, and as the price then rose quite strongly, it was clearly a pivotal moment but on the bullish side.
After rising quite firmly following this bullish breakout from the price channel, the price made a bearish reversal at $9,731 although this reversal is proceeding slowly.
The technical picture is definitely more bullish so I would prefer a long trade from a bounce at any support level given above, especially at $9,462 and ideally with a rejection from the broken upper trend line also.
Risk-on sentiment is holding which should help the price of Bitcoin increase.
There is nothing of high importance scheduled today regarding the USD.