Bitcoin: Bullish consolidation above $8,893
Yesterday’s signals were not triggered, as none of the key levels were reached over the course of the day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Friday.
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 I saw the best opportunity as likely to arise on the long side so I would take a bullish bias if we get a bounce at $8,893 and I would not take any short trades.
This was a good call insofar as it was at least enough to stay out of trouble.
Volatility here has decreased dramatically, with the price consolidating over the past day within a narrow range. This is a bullish sign, as the strongest recent technical change was bullish.
Therefore, I am still looking to take a bullish bias if we get a bounce at $8,893 and I would again not take any short trades today.
Regarding the USD, there is nothing of high importance scheduled today.