Bitcoin still topping out above $8,000
Yesterday’s signals produced a long trade from the bullish pin candlestick which rejected the support level at $7,582 which is currently in floating profit. Recent price action suggests it would be wise to close this trade in profit now.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Wednesday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.
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 Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,436, $8,593 or $8,893.
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 although the price has continued to hold up, it has consolidated and been unable to break the recent multi-month high price. I was still bullish but less so – I would need to see the price trade above $8,436 later today in order to take a bullish bias. The price never did get above that level, but the residual bullishness was enough for the price to find support at the level I correctly identified yesterday of $7,583.
I take the same approach again today – bullish above $8,436 and the longer that resistance holds, the deeper a consolidation pattern we are likely to see.
Regarding the USD, there is nothing of high importance due today.