Bitcoin: Very bullish
Yesterday’s signals were not triggered as there was no bearish price action when the resistance level at $12,171 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $11,624 or $11,485.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $12,804 or $13,176.
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 now risen by more than 10% from $10,200 and right now looked as if it was going to move still higher today.
I thought we would over the day see a further rise to at least $12,171 and therefore I wanted to take a bullish bias here until at least that level if the price was above $11,760 at 9am London time. It wasn’t, but my overall bullish analysis was proven to be correct as the price has now reached the resistance level at $12,171. Initial indications are that this level is being breached and invalidated, which would be a bullish sign.
There is no reason not to be bullish, we have a strong medium-term bullish trend and it seems to be independent of any move in the Dollar – it is about Bitcoin, which is a good sign.
There is nothing of high importance due today concerning the USD.