Bitcoin: Bullish consolidation above $8,893 continues
Last Thursday’s signals were not triggered, as none of the key levels identified have been reached yet.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $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 last Thursday that as the price was consolidating over the past day within a narrow range, I saw this as a bullish continuation sign so was still looking to take a bullish bias at a bounce at $8,893.
This was at least enough to stay out of trouble, as the price has continued to consolidate quietly on low volatility without even touching any of the key support or resistance levels.
Therefore, there is no change to the technical picture, and I remain broadly bullish.
I again would take a bullish bias if we get a firm bounce at the support level of $8,893.
Regarding the USD, there is nothing of high importance scheduled today.