Bitcoin: Bulls are still winning
Yesterday’s signals were not triggered as there was no bearish price action when the price reached $10,562.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 $10,461, $10,258, $9,982, or $9,801.
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 $10,921 or $11,112.
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 the technical picture had become considerably more bullish, but the resistance level just above the price at $10,562 also looked very solid and important. I thought bulls should have a slight edge, so I was prepared to take a bullish bias if we had gotten a solid bullish bounce following a retracement to $10,254.
Unfortunately, the low of the day was a little higher than that level, but I was correct to look towards the bullish side as the price advanced for another day.
It looks like we are getting a bearish retracement which will take the price back down towards the two support levels and the broken trend lines. I would be prepared to again take a bullish bias if we get a solid bullish reversal bounce at either of those two support levels today.
There is nothing of high importance due today concerning the USD.