My previous BTC/USD signal on 7th February was not triggered.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades may only be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $48,402 or $46,709.
- Place the stop loss $100 below the local swing low.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $49,793, $50,528, or $51,912.
- Place the stop loss $100 above the local swing high.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 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 in my previous BTC/USD analysis one week ago that the technical picture was more bullish as price action was contained within a narrowing triangle pattern.
I thought we were most likely to see a bullish breakout above this triangle, which could send the price higher to reach the next resistance level at $44,508. This was a very accurate and profitable call, with the strong bullish breakout giving an excellent entry signal.
The price went on to advance over recent days to reach a new 20-month high price but has struggled over the past few days to get established above $50k which is acting as a strong natural resistance point.
I think the $50k area will remain pivotal and may give an opportunity for a speculative short, or alternatively a long trade once we get a daily close firmly above $50k.
I favour the long trade entry, but I will wait for a New York close above the resistance level at $50,528.
There is nothing of high importance scheduled today regarding the US Dollar.
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