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 be taken at any time.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,000 or $8,976.
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.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $12,000.
Place the stop loss 1 pip above the local swing high.
Move 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
I wrote yesterday that the picture was looking more bearish. In fact, the action since then has been relatively bullish and the picture is now looking more bullish, at least over the short-term. We have seen the steepest bearish trend line (shown in the chart below) broken, and we can draw a new supportive trend line at about $10,000 now with more confidence. The potential resistance at $11,000 has also been wiped out. Bitcoin has been helped by the general fall in the USD everywhere.
I have no bias now. It looks as if the price will range between $10,000 and $12,000 for a while. If the supportive trend line below holds, Bitcoin has a chance to take off again over the coming weeks: it is a very crucial level technically and psychologically.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.