Yesterday’s signals were not triggered as there was no bearish price action at $3807.86.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered 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 $3807.86 or $3629.46.
- 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 Trade 1
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4115.86.
- 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
Yesterday saw a bullish development, with the anticipated resistance level at $3807.86 being broken cleanly by a strong push up, before the price was finally held by a long-term bearish trend line which still dominates, as shown in the chart below. Bitcoin continues to behave very technically against the Dollar, which is good news for traders using technical analysis.
A break above the bearish trend line not far from the current price would be a very bullish sign. The nearest support level at $3807.86 looks like it could be a very attractive place to find a great long trade entry, if it is reached following a pull-back.
Today I have a more bullish bias.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by the Chair of the Federal Reserve speaking at 5:45pm.