BTC/USD: Bearish momentum slowly turning bullish
Yesterday’s signals were not triggered, as the bearish price action took place slightly above $10,351.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5 pm Tokyo time Wednesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,731, $9,655, or $9,462.
- Put 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.
- 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 run.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,388 or $10,790.
- Put 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.
- 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 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 over recent days we have seen the downwards movement flatten out and bottom at about $10,000 which is a major psychological round number, so it was not surprising that some support has been found in this area.
I thought that the price may not quite be ready to rise yet, but it was also not likely to fall much further. Therefore, continuing consolidation in this area seemed to be the likely short-term outcome.
This was a good call as it reflected what happened over the past 24 hours.
The technical situation has not changed much but is marginally more bullish now.
I had to adjust the nearest resistance level upwards slightly.
I think we can say that the area at about $10,500 looks pivotal and if the price can get established above that, the situation will look more bullish.
I still want to take a long trade from a bounce at any support level, or if we get two consecutive hourly closes today above $10,500. However, in the second case, I would be wary of staying in the long trade if the price reaches $10,790 and struggles significantly to break any higher.
There is nothing of high importance due today concerning the USD.