DXY strength, the FED indicating they will continue with pedal to the metal and hold rates at zero until labour market is back in full force and inflation recovers to 2%. The market turned straight to the DXY for strength and in turn all DXY denominated assets fell including BTC/USD.

BTC/USD

BTC/USD has appreciated for the last 2 weeks correcting the September 1st – September 5th 18% drop in price, meeting the 61.8% Fibonacci clustering with resistance level 11,200. We now find ourselves inside interesting territory where BTC may break 10k.

 

BTC/USD

 

Key Points:

  • Price below the 200 EMA
  • Price below the 50 EMA
  • 50 EMA crossed through 200 EMA
  • Trend channel broken
  • Strong bounce and moving back into both EMAs clustering with 10,800
  • 8% Fibonacci (September 1st – September 5th range)

Key Levels:

Support – 10400, 9850, 9690

Resistance – 50 EMA, 200 EMA, 10800

Entry Zone:

Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.

Optimal Entry – 10700

Supporting Entry – 10600 (When price touches 50 EMA)

Candle Reversals for entry

  • Bearish Shooting Star
  • Bearish Engulfing
  • Bearish Dark Cloud CoverBearish Candlesticks

 

The Risk:

As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.

If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks above 10902 level and violates 200 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:

Optimal Entry 10700 – Target 1 9850 = 4x Reward to Risk

Optimal Entry 10700 – Target 2 9690 = 5x Reward to Risk

Supporting Entry 10600 – Target 1 9850 = 2.4x Reward to Risk

Supporting Entry 10600 – Target 2 9690 = 3x Reward to Risk