Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time Friday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $3,816 or $3,552.
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.
Short Trade
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,969.
Put 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.
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.
BTC/USD Analysis
I wrote yesterday that if the price could trade above $3,859 for a couple of hours and show some bullish momentum there, I would take a cautiously bullish bias. If the price settled above $4,000 that would be a very bullish sign. I thought that the pivotal level was likely to be $3,859 but a move down from there was unlikely.
I was perhaps slightly correct, as the price has mostly risen after finally getting to an area above $3,859, but this bullish move is weak and there is selling every time the price approaches the $3,900. However, we do have new higher support at $3,816 which looks relatively likely to be today’s pivotal level. If we get a bullish bounce there later, I would take a bullish bias.
There is nothing of high importance due today regarding the USD.