Last Thursday’s signals were not triggered, as there was no bullish price action when $4389.93 was reached.
Today’s BITCOIN/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trades
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3974.75 or $3600.00.
- 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 Trades
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4380.89 or $4779.06.
- 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
The signs are worsening for Bitcoin, with a new lower resistance level, a dominant bearish trend line, and a feel that the key support around the $4000.00 area is in danger. There is also a new steeper bearish trend line that can be convincingly placed within the chart below. If the price breaks down below the $4000.00 area, then we are in a Bitcoin bear market with a fall of more than 20% off the all-time high. Alternatively, if it holds, it could be a great buying opportunity.
I would not yet say there is a “bursting bubble”, but there could be a deep and sharp drop if the $4000 area does not hold.
There is nothing due today regarding the USD.