Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $14,058 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $14,256, $13,983, or $13,719.
Put the stop loss $50 below the local swing low.
Adjust 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 ride.
Short Trade Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $14,058.
Put the stop loss $50 above the local swing high.
Adjust 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 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 outlook looked somewhat bullish still despite the U.S. presidential election uncertainty, and again, a bullish break above $14,058 would be a further bullish sign.
This was a good call and the technical picture now looks even more bullish, with the price breaking and invalidating resistance.
The price chart shown below is dominated by a bullish price channel and in the past few hours we have seen a bullish breakout from that channel which is an even more bullish sign. The most bullish sign of all, of course, is that the price of Bitcoin has now reached its highest in almost three years. The short-term price action over the past few hours also suggests higher prices are going to be reached today, with the upper trend line of the price channel possible acting as bullish support.
The only bearish element I see is that we have a big psychological level and major round number ahead at $15,000.
I am bullish on Bitcoin and will take a long trade from a bullish bounce following a retracement to $14,259 if it sets up later.
Regarding the USD, counting and result releases are continuing in the U.S. presidential election, and the FOMC Statement will be released at 7pm London time followed by the usual press conference half an hour later.