Yesterday’s signals were not triggered as there was no bullish price action at $3327.31.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trade 1
· Go long after bullish price action on the H1 time frame following the next touch of $3000.00.
· Put the stop loss 1 pip below the local swing low.
· Move 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 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.
We still have an extremely bullish situation, with the price recently trading in blue sky at new all-time highs, thanks to a huge amount of public interest in investing or speculating in this crypto-currency on the long side. There is a widespread feeling among analysts that this pair is in a dangerous bubble which could burst spectacularly. This may be the case, but that does not mean that traders cannot enjoy the party while it lasts, provided a hard stop loss and low leverage are used.
Technically, we are now seeing a healthy and strong upwards movement resuming after yesterday’s spike down to the $3200.00 area. This took out a key support level, so it is difficult to pinpoint a dip where the pair should be bought before $3000.00. However, the outlook is strongly bullish so buying on short-term dips generally is probably a good strategy to use right now, provided stops and low leverage are used.
Regarding the USD, there will be releases of PPI and Unemployment Claims data at 1:30pm London time.