Last Thursday’s signals were not triggered as none of the key support or resistance levels identified have been reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $16,145, $15,507, $15,144, or $14,946.
Place the stop loss $50 below the local swing low.
Move 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 run.
Short Trade Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $17,901.
Place the stop loss $50 above the local swing high.
Move 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 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 last Thursday that as the price had room to rise much higher without encountering any obstacles until it got above $17,000, I was ready to take a bullish bias if we got two consecutive hourly closes between $16,000 and $16,600.
This was a good and profitable call as we did get these closes, and the price at the time of writing is a little more than $250 than the entry price that we got just above $16,000.
The technical picture is bullish, even though the former supportive trend line broke. None of the old support levels were reached during this bearish retracement, and we now have a new higher support level at $16,145 as well as a new supportive trend line. The price is clearly being held up by a succession of higher swing lows.
Market sentiment is risk-on, and this is helping Bitcoin to rise and adds another factor to the bullish case.
The price has reached new multi-month highs over the past few days and shows every indication that it was now begin another firm bullish movement. A key level to watch if $16,145 as if the price remains above this level, the outlook will be bullish.
Bulls should beware of potential resistance at the $16,500 area.
I will take a long trade entry if the price retraces to the support level at $16,145 and makes a firm bullish bounce there.
There is nothing of high importance due today concerning the USD.