Yesterday’s signals produced a profitable long trade following the bullish hourly pin candle rejecting the support level of $4500.00. It is worth holding any long trade in the current extremely bullish environment.
Today’s BITCOIN/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Long Trades
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $4450.00, $4400.00, or $4185.67.
- 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.
BITCOIN/USD Analysis
The price has remained capped over recent hours in the $4650.00 area, so there is a chance we may not see a new high again this week. The situation must still be described as extremely bullish. All obvious support levels remain intact and there are two which are confluent with major round numbers nearby at both $4450.00 and $4400.00. The price has risen by more than 25% within the last week alone, and has shown no real sign of getting ready for a serious pull-back yet. Every sign points to still higher prices, but there is probably a need for a pullback to at least $4450.00 first. It is possible $5000.00 could see at least a temporary halt to the advance, being such a large and potentially psychologically significant round number, but I see no attractive short trade on the horizon yet.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.