Bitcoin: remains bullish below new 1-year high near $9k
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Friday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436 or $7,830.
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 yesterday that I thought there was every reason to be bullish here in line with the long-term trend. I was ready to take an immediate bullish bias if the price were to retrace to the nearest support at $8,436 and make a strong upwards bounce there. As long as this support at $8,436 held, it made sense to be bullish and hope for new higher highs at $9,000 and above.
This was an acceptable call as the price has risen a little over the past 24 hours after being supported at the nearest key level, which is a bullish sign.
There is no change to the technical picture until the price breaks one of the nearby support or resistance levels.
My preference would be for a long trade entry following a strong bounce at the nearby support – I would take a bullish bias if that happens, in line with the long-term bullish trend.
Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.