Bitcoin: Weakly bullish
Last Thursday’s signals were not triggered as unfortunately we did not get the bullish turn at $7,698 until after 5pm Tokyo time.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,947 or $7,698.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,216 or $8,375 or $8,703.
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 it looked as if a deeper bearish pullback was underway. I thought that the most probable support level where we were likely to get a bullish turn was $7,477. I was correct about the bearish retracement before a bullish bounce, but I was wrong about the level where it would happen – it was actually the higher support level at $7,698 where we got the turn.
We have a more bullish picture now, but we still have a couple of resistance levels holding the price down, with the most important one at $8,216. I would take a bullish bias if we get a bounce at $7,947 and I would be more bullish still if the price can make two consecutive hourly closes above the resistance level at $8,375.
It is interesting that we may be seeing long-term buying now at these relatively lows as we begin 2020.
There is nothing of high importance due today concerning the USD.