BTC/USD: Awaiting breakout from $9,233 - $9,015 range
Yesterday’s signals were not triggered as none of the key support and resistance levels identified have been reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Thursday.
Long Trade Idea
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,014.
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 $9,233, $9,400, or $9,462.
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 I saw the best potential opportunity as a long trade from a bullish bounce at $9,014 which would ideally reject the confluent round number just below at $9,000 with the same movement. This did not set up so it was not an effective call, but I think it can apply again today as the price has held above $9,014 for another day which makes the technical picture a little more bullish still.
The past day has seen the price consolidate within a narrow range between $9,014 and $9,233. I think a bullish breakout is more likely than a bearish breakdown, so I will be happy to take a long trade from a firm bullish bounce at $9,014. Conversely, two consecutive hourly closes below $9,000 will be a bearish signal and could trigger a sharp fall.
Concerning the USD, there will be a release of the ADP Non-Farm Employment change forecast at 1:15pm London time.