Yesterday’s signals produced a profitable long trade following the bullish inside hourly candle rejecting the support level identified at $9362.32. It would probably be wise to take profit now if that has not already been done as there is likely to be considerable price turbulence if $10,000 is reached.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades must be taken only 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 $9727.68, $9362.32, or $8976.34.
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
The price failed to reach the psychologically important level of $10,000 yesterday, but it looks highly probable that it will happen today. Yesterday’s move was muted with a strong hour of selling kicking in at $9727.68, but the way there was a fast recovery after the fall and as the price action has now flipped the level to support, suggests there will be continuing bullish movement now.
The number one issue today is how close the price is to the psychologically huge price of $10,000. If the price is reached, we can expect a big reaction, either a sharp move down or a drive even higher on increasing momentum. This is typical when a hot new stock reaches such a significant number, and it is appropriate to compare Bitcoin to a hot new stock. At the time of writing, the price is barely $100 under $10,000.
I maintain a bullish bias, but the price action needs to be watched very carefully at $10,000.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, while the new designated Chair of the Federal Reserve will be testifying before Congress at the same time. The U.S. Treasury Secretary will be giving a minor presentation at 8:45pm.