My previous BTC/USD signal on 6th November was not triggered as none of the key support or resistance levels were reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken prior to 5pm Tokyo time Friday.
Long Trade Idea
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $35,469.
- Put the stop loss $100 below the local swing low.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 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 timeframe following the next touch of $37,179 or $38,659.
- Put the stop loss $100 above the local swing high.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 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 in my previous BTC/USD analysis last Monday that Bitcoin was stuck in a narrowing triangle pattern, and although the action above $35k was quite bearish, the triangle seemed more supportive than resistant as there is a support level quite confluent with its lower edge.
It therefore seemed likely that the support level at $34,669 is going to be today’s pivotal point. This was a great call as although it took until the next day to happen, the price made a major bullish breakout and came rising out of the triangle pattern to perform very strongly, making a new 17-month high price just a few hours ago not far from $37,000.
The technical picture now is simply bullish and is backed by a strong felling among crypto analysts that the US is likely to approve the first spot Bitcoin ETFs over the next few weeks or months, which will open the Bitcoin market more fully to retail investors.
Technically, the price is effectively trading in blue sky, which is very bullish.
The only thing bulls should watch out for is that the price is currently very close to the resistance level at $37,179.
Bitcoin will be very attractive to trend traders now.
I will look for a long trade today if the price retraces to the support level at $35,469 and makes a bullish bounce there.
Regarding the US Dollar, there will be a release of US unemployment claims data at 1:30pm London time.
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