Last Thursday’s signals were not triggered, as there was no bullish price action at $10,859.
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 $10,859 or the supportive trend line shown in the price chart below currently sitting at about $10,620.
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 the resistant trend line shown in the price chart below currently sitting at about $11,750.
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 towards the end of last week that the picture was looking slightly bullish, with the price likely to remain bounded between $10k and $12k. This turned out to be correct, as the price has continued to rise a little, and the supportive trend line shown in the price chart below continues to hold, so I remain slightly bullish. Technically, the interesting developments are the break above the steepest bearish trend line, which may now become supportive, and the increasing confluence of that line with the ascending trend line as well as a horizontal support level at $10,859. This area is becoming increasingly important and might provide the catalyst for a successful, long term bullish entry. However, there are several bearish trend lines above which may continue to hold down the price. A sustained break below $10,000 is quite likely to trigger a sharp fall to $7,500 or even $5,000 – Bitcoin still looks vulnerable.
There is nothing important due today regarding the USD.