Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BITCOIN/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 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 $4389.93 or $3974.75.
- 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.
Short Trade 1
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $4779.06.
- Put 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.
- 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
Bitcoin continued to rise, which was fairly good news for the bulls, and it even very slightly exceeded the nearest key swing high at about $4625.00 before pulling back over recent hours. However, it should be noted a new bearish upper channel trend line can be drawn which is parallel to the lower trend line, and therefore more valid, suggesting the price really needs to get beyond yesterday’s high to begin looking truly bullish again.
Although my bias is still bullish, there is no doubt there are some signs that we may be due a longer period of consolidation or retracement, and that it might be at least some time before new all-time high prices are made. The support above $4300.00 and the upper trend line are crucial areas in determining what is more likely to happen over the medium term.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, followed by Crude Oil Inventories at 3pm.