Yesterday’s signals were not triggered as the bearish price action at $8,893 was not sufficiently bearish to trigger a short trade entry.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Wednesday.
Long Trade
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436.
- 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.
Short Trades
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,893, $9.003, or $9,238.
- Place the stop loss 1 pip above the local swing high.
- 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
I wrote yesterday that the price has been rising and has continued to rise to a new 1-year high.
Bitcoin had almost doubled in value in recent weeks and this new high just under $9,000 presented a much more bullish picture.
This analysis holds and the short-term price action remains quite bullish, as there has only been a shallow bearish retracement. In fact, it is more of a consolidation than a retracement as the price has just been going sideways underneath the nearest resistance level of $8,893.
There is every reason to be bullish here in line with the long-term trend. I would take an immediate bullish bias if the price were to retrace to the nearest support at $8,436 and make a strong upwards bounce there.
There is nothing important due today concerning the USD.