Yesterday’s signals were not triggered, although any long trade from the previous day taken at the rejection of the support level of $3934.40. There was no bearish price action at $4201.58.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be taken until 5pm New York time today only.
Long Trades
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $4201.58, $3934.40, $3872.58, or $3706.34.
- Put the stop loss 1 pip below the local swing low.
- Move 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 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
The price has broken bullishly up above the former resistance at $4201.58, which now looks to have flipped to become probable support. The long-term trend is extremely bullish and the short-term picture is quite bullish, and the double top formation which looked earlier to be getting established at the all-time highs was a little worrying, but has now been decisively broken to the upside. The new support at $4201.58 has held, and in recent hours the price has gone on to make new all-time highs and continue upwards. There is nothing else to say except bullish, bullish, bullish.
Many people are scared that Bitcoin is a huge bubble which might burst any day. This may be so, but that only means it is foolish to invest in it. If you trade it, with low leverage and hard stop losses, you can make money going long while having a great chance to limit your losses to a maximum, although slippage could happen to some extent. For several weeks, we have been hearing “don’t trade Bitcoin” and the price has meanwhile doubled!
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.