Last Thursday’s signals were not triggered as there was no bullish price action when the price reached the level of anticipated support at $3600.00.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Long Trade 1
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3654.29 or $3427.30.
- Place 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.
- 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 $4041.33 or $4380.89.
- Place the stop loss 1 pip above the local swing high.
- Move 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
I wrote last Thursday that the $3600.00 support broke down, the price could fall very strongly and sharply. This is what happened: the price took a dive all the way down to just below the $3000.00, which was also marked on my chart as key support, making its largest fall from peak to trough in several years at almost 40% down. I was correct in calling the situation not yet a crash.
At $3000.00 the bulls stepped in with very strong buying, and since just last Friday the price has risen by almost one third – amazing volatility and a bullish sign of confidence in Bitcoin, which was under assault in the media and was beginning to look as if it might crash. Since then, the price has broken bullishly above two important bearish trend lines, and back through the former support at $3600.00. The price is now threatening to reach $4000.00, and may be held at the resistance just above, at least for a while.
Bitcoin now has a much more bullish outlook, but the final bearish trend line at $4200.00 and the resistant area around $4000.00 will probably be a difficult test.
There is nothing due today concerning the USD.