Bitcoin: Bullish consolidation above $8,893 still holding
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 Friday.
Long Trades
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $8,610.
- 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 $9,438 or $9,620.
- 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 the picture had become less bullish, but there was still a long-term bullish trend and I saw the key level to watch for support as $8,893 and not $9,128 which looked weak.
This was a good call as it was an accurate forecast.
Although we still have a higher support level above $8,893 at $9,236 it does not look to be very strong, so I still look to be bullish at either a bounce at $8,893 or following a solid breakout above $9,438. In these cases, I would be prepared to take a bullish bias in line with the long-term trend.
A short trade at another failure to break above $9,438 might also be a good trade opportunity.
There is nothing of high importance due today regarding the USD.