Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades may only be entered before 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 $10,000.00, $9727.68, or $9362.32.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 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
The price has finally reached and broken the psychologically huge level of $10,000, as expected. I wrote yesterday that 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.
This is exactly what happened, my second scenario, with the price making a very strong drive up to reach a new all-time high just under $10,750 and then falling very strongly before finding support at the $10,000 and moving up again. Volatility is extremely high, also as expected.
This means two things: the situation looks more likely to remain bullish than to break down, but also that volatility is extremely high, and the price also has a good chance of crashing down later. This means that position sizes should be extremely low, and the price action should be watched very carefully to manage trades. If $10,000 holds it makes sense to remain bullish.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm.