Bitcoin: Long-term buyers step in?
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level identified at $7,404 was hit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 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 $7,373, $7,192 or $6,786.
⦁ 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 $7,730 or $8,154.
⦁ 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 the technical picture had become more bearish and the price was showing short-term bearish momentum. If it broke through the next support level at $6,786 that would have been another bearish sign.
Despite that bearish picture, the price rose yesterday, and it looks increasingly like long-term buyers stepped in. The price broke easily through resistance and has got back into the area of its old bearish price channel.
If the price can get established later above $7,800 that would be a very bullish sign. Alternatively, the resistance at $7,730 looks very pivotal, so I would take a bearish bias if we get a bearish reversal off that level later on.
There is nothing of high importance due today concerning the the USD. It is a public holiday today in the U.S.A.