BTC/USD: Awaiting breakout from $9,304 - $9,015 range
Yesterday’s signals were not triggered as there was no bearish price action when the resistance level identified at $9,233 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5 pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,014.
- 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 $9,223, $9,304, $9,400, or $9,462.
- 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 I thought that a bullish breakout was more likely than a bearish breakdown from a narrow range between $9,014 and $9,233, so I would be happy to take a long trade from a firm bullish bounce at $9,014.
I was correct to see the bullish move, but despite the general improvement in risk sentiment which we saw in markets, Bitcoin only rose by a little before felling back into the zone of the former narrow range. There is little change to the technical picture, beyond readjusting the nearby resistance levels slightly.
The short-term price action is bearish, but the thing to watch for here really is a bullish bounce at the support near $9,000 which could be a good long-term trade entry if the price finally breaks bullishly above the psychological resistance at about $10,000 which has been a cap for a long time.
Concerning the USD, there will be a release of U.S. Non-Farm Payrolls data at 1:30 pm London time.