Bitcoin: Bottoming at $7,463?
Last Thursday’s signals produced a profitable long trade from the bullish inside candlestick which rejected the support level at $7,463.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Tuesday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $7,463 or $7,202 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 $7,793, $8,153 or $8,340.
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 last Thursday that everything would still probably depend upon $7,871 being breached, which would create a more bullish picture and may be the catalyst for a resumption of the strong long-term bullish trend. I was ready to take a bullish bias if the price could trade above $7,871 for a couple of hours consecutively later. This was an OK call, as the level was not breached for many hours and the price moved down, but then it was eventually broken, and this saw the price the n move up to a point just below the next resistance level.
The picture now is more bearish, but we may be seeing a double bottom at $7,463.
I would take a bullish bias later if the price can trade above $7,800 for a couple of hours consecutively later.
There is nothing important due today concerning the USD.