My previous BTC/USD signal on 9th March produced a profitable short trade from the bearish rejection of the resistance level which I had identified at $68,077.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $72,907, $72,240, or $71,298.
Put 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 Idea
Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $81,203.
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.
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
In my last BTC/USD forecast on Monday last week, I thought that the price was likely to stay within the range between the strong support at $65,223 the resistance level at $68,077.
This was a good and profitable call as the resistance level capped off the high of the trading day, or at least the first sessions of the day.
The technical picture has become more bullish for Bitcoin since then, as the price finally made a bullish breakout beyond the $68k handle and continued rising, establishing several more stairstep support levels as it climbed.
However, we now see lower highs with some serious selling action, which suggests that the price is likely to be pressed lower to test its nearest support level at $72,907. There are two other support levels close below, but no resistance until the $81k handle, so the price has lots of room to rise.
I think the line of least resistance is upwards, so even though Bitcoin is in a long-term bearish trend, it seems to be undergoing a significant bullish revival.
I think the best opportunity which might set up today will be a long trade from a bullish bounce rejecting either of the two nearest support levels – ideally, rejecting both simultaneously.
https://www.tradingview.com/chart?symbol=COINBASE%3ABTCUSD
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be a release of PPI data at 12:30pm London time.
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