Bitcoin: Sold above $12,000
Yesterday’s signals were not triggered, as there was insufficiently bullish price action at either $11,624 or $11,485.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $11,112 or $11,000 or $10,890.
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 Ideas
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $12,804 or $13,176.
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 following the breach of the resistance level at $12,171 there was no reason not to be bullish, we had a strong medium-term bullish trend and it seemed to be independent of any move in the Dollar – it was about Bitcoin, which was a good sign.
This turned out to be not such a good call, as the price rose only slightly before selling off quite firmly, leaving the price lower. Technically, the interesting feature today is the large space we have without any obvious key support or resistance levels between $11,112 and $12,804.
I would take a bullish bias if we get a firm bullish bounce at any of the support levels below following a further bearish retracement. The medium-term bullish trend still seems to be intact so I wouldn’t count on a major bearish trend change yet.
There is nothing of high importance due today concerning the USD.