Last Thursday’s signals produced a profitable trade following the bullish rejection of the support levels specified, but the trade produced only minimal profit before being stopped out.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $7097.31 or $6815.36.
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.
Short Trade 1
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7475.80.
Put the stop loss 1 pip above the local swing high.
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 picture is still bullish, as Bitcoin made new all-time high prices over recent days, but the advance seems to have run into some selling around the psychological level of $7500.00. It has become possible to draw a couple of resistance levels not far from the current price, and a deeper bearish retracement looks like it might happen. However, there is nothing for bears to get very excited about yet, as there has not yet been a break of significant support. The important support is being felt now at a confluence of two bullish trend lines and an obvious flipped horizontal level just below $7100.00. If the price breaks below there in a sustained way, there will be trapped longs forced into panic liquidation, and that would be quite likely to drive the price much lower, possible even down to the $6500.00 area. Alternatively, if the price can get established above $7500.00, it will probably continue to rise steadily.
I maintain a bullish bias and do not see any compelling reason to do otherwise.
There is nothing due today concerning the USD.