Bitcoin: More bullish above $8,000
Yesterday’s signals were not triggered, as there was no bearish price action at $8,153.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Friday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of or $7,930, $7,754 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 $8,340 or $8,610.
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 big picture here was a consolidation pattern between $7,463 and $8,143. If the price could get established above $8,153 and begin to use it as higher support, I would take a bullish bias. This was a good call insofar as I was right to look to the bullish direction, with the former resistance level nearby becoming invalidated, although the new higher support is now at $8,071 and not $8,153.
I take a weakly bullish bias and would enter a long trade if we get a strong bullish bounce at either $7,930 or $7,754. If the price can get established above $8,340 that would be a very bullish sign and indicate that we will probably see a break of the multi-month high close to $9,000 soon.
There is nothing important due today concerning the USD.