Bitcoin: Bullish consolidation above $8,893 still holds
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 must be entered before 5pm Tokyo time Thursday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $8,610.
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 $9,438 or $9,620.
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 yesterday that although the price action was still quite consolidative, the picture was marginally more bullish, as we got a higher high and a higher support level holding above $9,000, although I would not want to use this level yet. I was ready take a bullish bias if the price could make a sustained break above $9,438.
This was a good call, or at least it was enough to keep out of trouble as the consolidation became less bullish and the price reached lower levels.
The picture is now less bullish, but there is still a long-term bullish trend and I see the key level to watch for support as $8,893 and not $9,128 which looks weak.
I would take a bullish bias later if the price can make a sustained break above $9,438.
Concerning the USD, there will be releases of the FOMC Economic Projections, FOMC Statement, and Federal Funds Rate at 7pm London time, followed half an hour later by the usual press conference.