Last Thursday’s signals produced a long trade entry from the bullish engulfing candle rejecting the support level at $4201.58, which just barely made the minimum $50 profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trades
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3934.40, $3872.58, or $3706.34.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trade 1
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4187.57
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 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.
BTC/USD Analysis
After recent strongly bullish moves, the price has finally cooled off and begun to consolidate. It is interesting how technically Bitcoin behaves, more so than most Forex pairs. We had a decisive break below the former support around $4200.00 and the bullish trend line which was confluent in that area. However, the support at $3934.40 has held over the past few days, and a new short-term bullish trend line can be drawn connecting recent swing lows which is just now having its third hit, a possible sign we may be about to move up again. However, volatility is getting lower, and there is a new flipped resistance level above at $4187.57, so some caution is needed before going long again. There is also selling at the round number of $4100.00. The long-term bullish trend is holding up though, so there is no need to get too excited about going short yet.
There is nothing due today concerning the USD.