Bitcoin: Consolidating triangle around $11,750 area
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken 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 $11,112 or $11,000 or $10,890.
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 Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $12,804 or $13,176.
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 a large technical space had opened up without any obvious key support or resistance levels between $11,112 and $12,804.
I was ready to take a bullish bias if we had gotten a firm bullish bounce at any of the support levels below following a further bearish retracement, but none of the support levels were reached.
The price is now consolidating within a symmetrical triangle formation, centred a little below $12,000. I would stand aside for the time being and would not pay much attention to a breakout from the triangle. I see the key thing to watch for as a bearish retracement to support at $11,112 and to watch carefully how the price reacts there: if it is a solid bullish bounce, I would take a bullish bias as the price has a lot of room to rise, all the way to $12,804.
There is nothing of high importance due today concerning the USD.