Last Thursday’s signals were not triggered as none of the key support levels were reached during that session.
Today’s BITCOIN/USD Signals
Risk 0.75% per trade.
Trades may only be entered up until 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 $4400.00, or $4185.67.
- 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 $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.
BITCOIN/USD Analysis
After peaking just below the psychologically key $5000 level at the end of last week, and making new all-time high prices in the process, Bitcoin is now in its strongest bearish retracement for approximately 2 weeks. There is also a flipped support to resistance level above at $4779.06. This paints a more bearish picture, but it is nothing at all for bulls to get panicky about. It looks like a healthy retracement within a strong bullish trend, and therefore we are likely to get a good buying opportunity. This may come if a double bottom is convincingly printed at $4400.00, but if that level breaks down, we are likely to fall further to at least $4185.67, which would be a very attractive level at which to get in if there is a bullish reversal there.
Bitcoin is in a very strong, long-term bullish trend, and is likely to continue to offer excellent profit opportunities on the long side for some time yet.
There is nothing due today regarding the USD. It is a public holiday in the U.S.A.