Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken 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 $7836.69 or $7346.96.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Remove 50% of the position as profit when the trade is $200 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.
BTC/USD Analysis
Bitcoin made a new all-time high just after yesterday’s New York session. It has risen by more than 50% in value in just one week! The continuing upwards movement has printed a new, higher support level at $7836.69. Although the price swings over recent hours have increased in volatility as the impact of Bitcoin clearing $8000.00 is absorbed, there is no reason to be anything other than very bullish. I wrote yesterday that a deeper retracement might be required before the price could move higher still, but it looks as if we have just had such a retracement down to $7800. The only obstacle to watch out for above would be the extremely psychologically significant price of $10,000.
I maintain a very bullish bias. The breakout of Bitcoin over the past few months from about $2700 to $8000 has provided traders with a series of great long trade opportunities. There may well be a crash one day, but until that happens it pays to be on the long side at the bullish bounces.
Regarding the USD, the Chair of the Federal Reserve Janet Yellen will be speaking at a panel discussion at 11pm London time.