Bitcoin: Bottoming from $7,463
Yesterday’s signals were not triggered as there was no bearish price action when the former resistance level at $7,793 was reached. Flipped resistance at 7793 to become new higher support and perhaps also 7923
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Wednesday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of or $7,793 or $7,463.
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 $8,153 or $8,340.
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 picture had become more bearish, but we may be seeing a double bottom form at $7,463. Therefore, I was ready to take a bullish bias later if the price could trade above $7,800 for a couple of hours consecutively. This is what happened, with a strong upwards push flipping the level at $7,793 from resistance to new higher probable support, and although the price is currently a little below where the long trade entry would have been made, there is another higher support level we can draw in the price chart at $7,923 and at the time of writing the price is continuing to hold above that too. These are bullish signs, yet the fact that the price has made such a deep retracement from its recent multi-month high also suggests that bulls may struggle to drive the price much higher over the short-term. So overall, I see the picture as very weakly bullish, and I will get more bullish as the price gets established above each subsequent higher resistance level shown in the price chart below.
There is nothing important due today concerning the USD.