Bitcoin: Bullish trend continues
Yesterday’s signals were not triggered as there was insufficiently bearish price action at $13,166.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $12,082, $11,808, or $11,649.
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 Trade Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $14,256.
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 situation continued to look bullish as $12,383 continued to hold. I thought that if this new support held up, the price was likely to advance to at least $13,166 in line with the long-term bullish trend. I take a bullish bias above this price.
The level at $12,383 did not hold up precisely, but the bullish price action from a little below that saw the price continue to rise over the past day. Note that my resistance level at $13,166 has held almost to the pip: Bitcoin against USD tends to behave very technically, so obvious flipped support and resistance levels tend to hold relatively precisely.
For today, a break above $13,166 would be a very bullish sign, but the price may well fail before reaching the next resistance at $14,256 as the recent high price is between these levels.
I would take a bullish bias if the price will close above $13,166 for a couple of hours consecutively.
Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Congress at 3pm London time, and there will be a release of FOMC Meeting Minutes at 7pm.