My previous BTC/USD signal on 22nd February was not triggered as none of the key support or resistance level which I had identified were reached that day.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades may only be taken until 5pm Tokyo time on Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $55,425, $53,853, or $53,201.
- Place the stop loss $100 below the local swing low.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $59,959, $62,407, or $65,601.
- Place the stop loss $100 above the local swing high.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 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 in my previous BTC/USD analysis almost one week ago that we were seeing a wide consolidation between $53,000 and $50,600 continuing. However, I thought that the odds seemed to be with the bulls as the price was near a long-term high within a valid long-term bullish trend.
The bullish breakout did not happen that day, but I was proved right a few days later.
The price has now been rising strongly over the past two days to reach a new 2-year high, in fact, it is not far off a three-year high. The price has room to rise to $60,000 or thereabouts before it might meet any key resistance level. The fact that the price is now very close to the top of today’s range is a further bullish sign that the price will keep rising.
I hold a long position in Bitcoin from about one week ago and I am happy with that. As for seeking a new entry point for a long trade, it will probably be best to wait for a consolidation and then another bullish breakout, or a retracement to $55,425 and a (hopefully) bullish bounce off that level, before entering.
Regarding the US Dollar, there will be a release of Preliminary GDP data at 1:30pm London time.
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