Bitcoin: Bullish consolidation above $8,893 continues
Yesterday’s signals were not triggered, as none of the key levels were reached.
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 after a bullish price action reversal on the H1 time frame following the next touch of $9,222, $8,893, $8,458, or $8,102.
- 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 $9,489 or $10,440.
- 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 best approach was likely to be taking a bullish bias above $9,489 and a bearish bias below $8,893. I suspected there may be more potential upside than downside, so a bullish breakout was likely to run further than a bearish one.
I stand by this analysis today, which was enough to keep out of trouble yesterday as neither of those levels given were breached yet.
The technical picture is a little more bullish still, as we have a new higher support level which formed within the consolidation zone at $9,222.
The price has more room to rise than fall, so I see the best opportunity likely to arise here as a long trade following a breakout above $9,489, If it happens, the next resistance level above $10,000 could be hit very quickly, so I would take a bullish bias if it happens.
There is nothing of high importance due today concerning the USD.