Yesterday’s signals were not triggered, as the price never reached any of the specified key support levels.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades must be taken prior to 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 $16,000.00, $14,138.60, $12,800.21 or $11,815.43.
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.
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
I wrote yesterday that a failure here (at the all-time high just under $17,000) could see a major double top form, and a medium-term bear market emerge. However, a bullish outcome was still more likely. The price should be watched very carefully here over the next day or so as the market is going to have to show its hand at about $17,000. Well, although it initially looked like the price was going to fail and turn more bearish, the price turned around and went on to make a new all-time high, which I thought was the more likely outcome. The new all-time high was only a few hundred dollars higher than the previous one, which might be significant – it suggests that the spectacular pace of the rise might be slowing down. One reason for this might be the launch of Bitcoin futures in Chicago, which provide a better vehicle for shorting Bitcoin, although as these futures are not deliverable but instead only cash-settled, they may not slow the rise by much or at all. Technically, the price has printed new higher support at the round number of $16,000 and looks likely to continue to advance.
I have a bullish bias, but I note the slowing pace of the rise. Bulls should be cautious when the price reaches the all-time high, $17, 500, or $20,000.
Regarding the USD, there will be a release of PPI data at 1:30pm London time.