Yesterday’s signals were not triggered, as there was no bearish price action at $4115.86.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm New York time today.
Long Trade 1
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4115.86.
- Place 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.
- 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.
Short Trade 1
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4380.89.
- Place the stop loss 1 pip above the local swing high.
- Move 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
The price has now cleared the $4000 area and the former resistance level at $4115.86, which has now flipped to become probable support. My bullish bias from yesterday was correct and there is no reason not to stay bullish, in fact it makes sense to be more strongly bullish, as the price continues to rise and make new highs as at the time of writing. The strength of Bitcoin is also impressive considering we are measuring it here in USD, even as the USD has strengthened considerably this week.
Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.