Bitcoin consolidating just below $8,000
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.
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 $8,436, $8,593 or $8,893.
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 yesterday that I would be bullish above $8,436 and I thought that the longer that resistance held, the deeper a consolidation pattern we are likely to see.
The resistance has continued to hold, but the picture looks just a little more bullish as it does not seem the price is being sold heavily above $8,000. It looks like more of a neutral consolidation and as there is a long-term bullish trend, the odds should still be with the bulls although not by much.
I think the best opportunity would be another bounce at the nearest support, although a bearish rejection of $8,436 could also be interesting for a short trade.
I would take a bullish bias at a bounce at $7,583 or if the price can break above $8,436.
Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.