Bitcoin: Consolidating triangle above $10,805
Last Thursday’s signals produced a profitable long trade from the bullish pin candlestick which rejected the support level identified at $11,561 but it only made a small profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades can be taken until 5pm Tokyo time Tuesday.
Long Trade Idea
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,805.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $11,649, $11,808, or $12,364.
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 the picture was looking quite bullish with a strong long-term bullish trend and a medium-term bullish move dominating too, although over the short-term the price was retracing. This suggested that looking for a long trade at a bullish bounce at the support of $11,561 would be the smart move, and I would take a bullish bias here in that scenario. This was reasonably accurate as the price did bounce and rise a little higher from there before getting established below that level, which did result in a more bearish picture.
The price now is within a consolidating triangle and I see a bullish break above $11,808 as likely to be technically significant, enough to create a more bullish situation, while a break below $10,805 would be a very bullish sign. That latter level looks very interesting and pivotal, a long trade at a bullish bounce there could be a great trade entry opportunity and if it set up, I would take a bullish bias.
There is nothing of high importance due today regarding the USD.