Bitcoin: Pivotal points at $7,753 and the $8,250 area
Yesterday’s signals were not triggered, as there was no bullish price action at $8,125.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,754 or $7,202.
Put 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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,102, $8,161, or $8,458.
Put 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 picture had become more bullish due to the break of the former bearish trend line. I thought that as long as $8,125 survived a test from above and produced a bullish bounce, it would make sense to take a weakly bullish bias later once that happens. This was a good call as that level broke cleanly when it was finally reached and moved down further, so it did work as a pivotal point for the day.
Bitcoin is getting interesting now, because there is a supportive trend line and a long-term inflective low at $7,753 which may produce a long-term bullish reversal. On the other hand, we can draw a new medium-term bearish trend line which is pushing the price down, and that line is currently sitting at about $8,263. Both of these levels are very likely to be pivotal points. I would wait for a rejection or breakout at either, and if something decisive, strong and convincing happens there, follow along with it. I suspect that the best scenario would still be a long from $7,753 or a price very close to it.
There is nothing of high importance due today concerning the USD.