Bitcoin: Bullish above $11,561
Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Friday.
Long Trade Ideas
Go long at a bullish price action reversal on the H1 time frame following the next touch of $11,561 or $10,851.
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 Trade Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $12,364.
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 day’s pivotal point was very likely to be $10,851, and if that level held with a bullish bounce which was strong, I could see the price continuing up to the $12,500 area. I would take a bullish bias in this scenario.
This was a reasonably good call as the price moved up over the day and reached a high at about $12,500. The picture still looks quite bullish with a strong long-term bullish trend and a medium-term bullish move dominating too, although over the short-term the price is retracing. This suggests that looking for a long trade at a bullish bounce at the support of $11,561 will be the smart move, and I would take a bullish bias here in that scenario. If the price gets established below that level it would indicate a deeper bearish retracement is happening.
There is nothing of high importance due today regarding the USD. It is a public holiday in the U.S.A.