My previous BTC/USD signal on 28th February was not triggered as none of the key resistance levels which were hit that day produced any bearish price action.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades must be entered before 5pm Tokyo time on Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $69,968, $66,480, or $65,601.
- Put the stop loss $100 below the local swing low.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $75,000 or $80,000.
- Put the stop loss $100 above the local swing high.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 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.
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BTC/USD Analysis
I wrote in my previous BTC/USD analysis two weeks ago that we were seeing some bullish signs:
- Reaching a new 2-year high, in fact, not far off a three-year high.
- The price had room to rise to $60,000 or thereabouts before it might meet any key resistance level.
- The fact that the price was very close to the top of the day’s range.
This was a good call as the price rose over the day and has been rising ever since, with Bitcoin making another new all-time high price yesterday. The price is now showing bullish short-term price action and is rising to approach this high point again, so there are signs that the price is going to make another record today. I expect to see new record high prices later.
Once the price has got into blue sky above the highs, we can only guess that major round number such as $75k or $80k might act as resistance.
I am happy to hold a long position and I think it is wisest to look for long trades. Two consecutive higher hourly closes above the all-time high of $73,054 could be a good entry signal.
Regarding the US Dollar, there will be a 30-Year Bond Auction at 5:01pm London time.
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