Yesterday’s signals were not triggered, as there was insufficiently bearish price action at $8,350.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,287, $8,165 or $8,051.
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 Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,436 or $8,593.
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 although I was still bullish, I noted that the price was now approaching much tighter clusters of resistance levels as it gets close to $8,000 and this may well slow down the advance. In any case, it looked like a good buy at the nearest support. My bullish bias was correct as the price has continued to rise, and the tighter cluster of resistance levels has had an impact in slowing the advance down, or at least in producing deeper bearish retracements. I maintain a bullish bias but expect the pace of the rise to continue to slow down.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.