Yesterday’s signals may have provided a long trade entry from the bullish bounce at $10,859, although the hourly candle making the major rejection of the level was not very convincing. It is possible the trade may move further into profit, but it looks unconvincing so far, therefore it might be better to exit for break even if possible.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades can be entered at any time.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of the supportive trend line shown in the price chart below currently sitting at about $10,783, or $10,000.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Short Trade
Short entry after a bearish price action reversal on the H1 time frame following the next touch of the resistant trend line shown in the price chart below currently sitting at about $11,562.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 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
I wrote yesterday that the current price area is becoming increasingly important and might provide the catalyst for a successful, long term bullish entry. However, there are several bearish trend lines above which may continue to hold down the price. A sustained break below $10,000 is quite likely to trigger a sharp fall to $7,500 or even $5,000 – Bitcoin still looks vulnerable. There has been no change to this picture over the past 24 hours, with the price still ranging between the trend lines. Bitcoin approaches a pivotal moment and the eventual breakout from this triangle is probably going to be significant. Traders should watch carefully. I have a slight bullish bias above $10,000.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and President Trump will be delivering a state of the union address at 2am.