Yesterday’s signals were not triggered as none of the key levels were reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5 pm Tokyo time Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,731, $9,655, or $9,462.
- Place 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.
- Remove 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,408 or $10,790.
- Place 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.
- Remove 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 were seeing the downwards movement flatten out and bottom at about $10,000 which is a major psychological round number.
I also thought that the area at about $10,500 looked pivotal and if the price would get established above that, the situation would look more bullish.
This was a good and correct call as the price keeps getting bid up every time it dips a little below $10,000 while the price has so far failed to even reach $10,500.
There is little change to the technical picture.
I still will take a long trade from a bullish bounce at any identified support level which is reached below $10,000 or if we get two consecutive hourly closes later above $10,500 – while being careful of the resistance at $10,790 in that second case.
It is significant that Bitcoin is finding strong support at about $10,000 while other risky assets have been falling.
There is nothing of high importance due today concerning the USD.