Bitcoin: New 1-Year High near $9k
Last Thursday’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 must be entered prior to 5pm Tokyo time Tuesday.
Long Trade
Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436.
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 $8,893, $9.003, or $9,238.
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 Thursday the due to the selling earlier above $8,000 the picture looked a little more bearish and less consolidative. I would still be ready to take a long trade from lower support at $7,202. I would take a very weak bearish bias if the price can close below $7,583 for a couple of hours consecutively later.
This wasn’t a great call, but it was enough to keep out of trouble as ever since I wrote that, the price has been rising and continued to rise to a new 1-year high.
Bitcoin has almost doubled in value in recent weeks and this new high just under $9,000 presents a much more bullish picture. There is a strong long-term bullish trend so traders should consider getting interested in Bitcoin again.
I would take a bullish bias today if there were a strong bounce at the support level of $8,436.
There is nothing important due today concerning the USD. It is a public holiday today in the U.S.A.