Bitcoin: Strong bullish breakout beyond $10k
Last Thursday’s signals produced a profitable long trade following the bullish breakout I anticipated above $9,438.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken 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 $10,250 or $9,620.
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 $11,508.
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 I was still looking 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.
This was a good call, as we got the solid bullish breakout above $9,438 that day which produced a profitable long trade.
There is every reason to be bullish, we have a long-term bullish trend, advancement to new multi-month highs, and finally a sustained break above the big psychological round number at $10k.
I take a bullish bias today if we get a bullish bounce at $10,250.
There is nothing of high importance due today regarding the USD.