Yesterday’s signals probably produced an initial losing trade at $3415.00 followed by a profitable long trade off a bullish bounce from $3327.31. Partial profits would have been taken on the latter trade so it is worth keeping the remainder open and hoping the price will run, as we have very recently made new all-time high prices.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
· Long entry after bullish price action on the H1 time frame following the next touch of $3327.31.
· Place the stop loss 1 pip below the local swing low.
· Adjust the stop loss to break even once the trade is $50 in profit by price.
· Take off 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
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, a new probable support level has been confirmed at $3327.31, which looks as if it could be an excellent buying point if the prices retraces to that level and then again bounces bullishly. Any risk-free trade long of this pair is worth holding on to in the current market environment, even though the bullish action has cooled a little in recent hours.
Concerning the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.