Yesterday’s signals were not triggered, as there was insufficiently bearish price action at $6,805.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time, during the next 24-hour period.
Long Trade
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,266.
Put 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 $6,805.
Put 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 I had a bullish bias generally and would be very bullish above $6,805. This worked out very well as the price has made a dramatic mode upwards. This was helped by the fact that ere was a lot of “blue sky” above $6,804. The action has cooled off, but there is every reason to be bullish, and to see these recent strong upwards movements as significant. We may well be seeing the start of a new crowding into Bitcoin as the rise gets publicity. I maintain a bullish bias and would be extremely careful about taking any short trade.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm and Crude Oil Inventories at 3:30pm London time.