Bitcoin: Weakly bullish above $7,414
Last Thursday’s signals gave a short trade from the bearish rejection of $7,459 but the trade only broke even as the price came back to rise higher after a short while.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 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 $7,414, $7,131, or $6,786.
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 $7,698 or $7,824 or $8,000.
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 if the price could get established above the descending trend line, it would be a significantly bullish sign. Despite that, there are a lot of key resistance levels up there which could act to hold the price down.
The price did get established above that trend line and has held up, but hasn’t really risen by any significant amount, so this was an OK call but not a great one. I was right about the price mostly ranging.
So, we have a weakly bullish sign, and we can draw a bullish ascending trend line covering recent days. However, I do not have strong confidence in this ascending trend line as it has not been touched much. Nevertheless, the support level at $7,414 looks pivotal, and if it tested again and gives a firm bullish bounce while holding, we should see the price rise to reach at least $7,700 so I would take a weakly bullish bias in this scenario.
There is nothing of high importance due today concerning the USD.