Bitcoin: Bullish breakout holds above long-term trend line
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,893, $8,458, or $8,102.
Place 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 Trade Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,489 or $10,440.
Place 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 we now had a much more bullish picture, and the support at $8,893 was likely to be strong as it was now very confluent with the broken trend line and may act as support.
This was a reasonably good call as the price has continued to hold up above that level and the trend line.
There is a short-term bearish sign with new lower resistance forming at $9,489 close to $9,500.
It seems there is selling from $10,000 but it is also true that we have a more bullish situation and the bulls should come back soon if the support at $8,893 holds up after it next gets tested from above. For this reason, I would still look to take a bullish bias following a solid bounce at that level later.
Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.