Bitcoin: Bullish breakout from consolidating triangle
Yesterday’s signals were not triggered as there was insufficiently bearish price action at any of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be entered before 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $13,282, $11,808, or $11,649.
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 Trade Ideas
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $13,166, or $14,256.
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 was within a consolidating triangle and I saw a bullish break above $11,808 as likely to be technically significant, enough to create a more bullish situation, while a break below $10,805 would be a very bearish sign. Unfortunately, the price never got back to $10,805 but I was absolutely correct in seeing a break above $11,808 as likely to produce further significant bullish price movement.
The situation continues to look bullish as $12,383 continues to hold. If this new support holds up, the price is likely to advance to at least $13,166 in line with the long-term bullish trend. I take a bullish bias above this price.
On the bearish side, the price has not yet exceeded the levels seen towards the end of June, so a bearish long-term double top at about $14,000 is still something to watch out for.
Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.