Bitcoin: Strong bullish bounce from $6,441
Yesterday’s signals produced an excellent, profitable long trade from the bullish bounce at the support level at $6,441. It will probably be worth taking most of any remaining floating profit now.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Friday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,786 or $6,441.
Place 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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,221, $7,269, or $7,445.
Place 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 price had come very close to reaching a new 6-month low price which was a bearish sign. Bitcoin continued to look bearish on every time frame so I remained bearish here below $6,786 but would want to see an hourly close below $6,580 first.
This was a good call insofar as my bearishness was followed only to the next support level of $6,441, where the price turned dramatically bullish and made a very strong upwards push, engulfing the entire price range of the last 10 days within only a few hours.
The size of this bullish thrust puts the long-term bearish trend in doubt, and we may have seen some significant long-term buying from the low.
Much will now depend whether the price can get established above the current resistance level at $7,269 which would be a bullish sign if it happens.
If the resistance at $7,220 holds and the price can get re-established below the round number at $7,000 then we can write off this bullish thrust as a spike and expect the downwards trend to resume.
There is nothing of high importance due today concerning the USD.