BTC/USD: Yet almost no bullish momentum
Last Thursday’s signals were not triggered, as there was no bullish price action when the price first reached $9,109.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5 pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,142, $9,097, or $9,011.
- 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 $9,284, $9,352, 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 last Thursday that the best course of action would be to wait for the price to either break below $9,000 which would be a bearish sign, or above $9,284, which would be a bullish sign.
Bulls who had faith in the long-term prospects of Bitcoin might be ready to take a long trade from support levels near $9,000.
This was an accurate call as despite falling heavily last Thursday, the price held up from $9,000 which would have been a good place to buy at. However, the lack of momentum is reflected in the fact that we see the area at $9,284 continues to hold, in fact, it has not even been touched.
Technically, we have a slightly more bullish picture, after the $9,000 area held again, and the price has edged up to break above the upper trend line of the readjusted consolidating triangle.
This suggests bulls have a slight edge.
I would be prepared to be bullish from another bounce near the $9,000 or if the price can get established above $9,284 later so my stance here is basically unchanged.
There is nothing of high importance scheduled today regarding the USD.