Last Wednesday’s signals were not triggered, as there was no bullish price action when $5,950 was reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be taken before 5pm Tokyo time Tuesday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $6,811, $6,679, $6,441 or $6,171.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trades
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,186 or $7,685.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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 last Wednesday that a move down to the second support level at $5,667 looked quite possible, but I would be ready to take a bullish bias if there were a strong bounce there. I would also consider taking a short trade if there were another test and convincing rejection of $5,950. The support level mentioned was never reached and there was no bearish price action at $5,950.
The picture has simply become strongly bullish since last Wednesday, with the price making a 30%+ rise in value to its peak yesterday. It is true that there is new lower resistance formed over the past few hours by bearish price action, but we now have a strong rise coupled with a clear long-term bullish trend in a speculative asset.
There is no reason not to be bullish, and I would take a bullish bias if we get a firm bullish bounce at any of the blue support levels shown in the price chart below.
There is nothing important due today concerning the USD.