Bitcoin makes another 10-month high price
Yesterday’s signals were not triggered as there was no bearish price action at $8,287.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Friday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $50 in profit by price.
Remove 50% of the position as profit when the trade is $50 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, $8,593 or $8,893.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is $50 in profit by price.
Remove 50% of the position as profit when the trade is $50 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 there was no reason not to be generally bullish just because we have had a day of consolidation. I would take a bullish bias above $8,350 or if there is a strong bullish bounce following a bearish retracement to the $7,582 support level.
There was no retracement to $7,582 but the price did briefly trade above $8,350 so this wasn’t such a good call (yet) as the price has pulled back and printed new lower resistance at $8,134 – this level is too fresh to be included within my resistance levels in the signal above though.
It makes sense to remain bullish, but a period of consolidation or a deeper retracement are becoming less unlikely scenarios. I would take a bullish bias following a retracement to and bullish bounce at the nearby support level of $7,582.
Regarding the USD, there is nothing of high importance due today.