Yesterday’s signals were not triggered, as none of the key levels have been reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm New York time today.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4626.13 or $4410.92.
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 strongly bearish price action reversal on the H1 time frame following the next touch of $5000.00.
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 picture remains bullish. The price rose yesterday as expected, but topped out at the round number of $4900.00 which was confluent with the upper trend line of the bullish price channel shown in the chart below. This pair consistently exhibits reliable technical behaviour. The price now looks to have established a new swing low at the round number of $4700.00 and there is no reason why it should fall any further, although that looks like a possible scenario. The support level at $4626.13 looks very attractive, so if there is a further fall, the reaction at that level is certainly worth watching closely. My recent bullish bias has proved to be correct and there is no reason not to stay bullish. Technically, the price remains with a clear medium-term bullish channel. I keep a firm bullish bias for now, but note that we could see a bearish reaction if the price makes a new all-time high and hits the psychologically important $5000.00 level. I would still be much more comfortable entering a new long trade than a short trade.
Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.