Bitcoin: More bullish above $8,375
Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels which were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Wednesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,375, $8,216 or $7,947.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,703, $8,893, or $9,904.
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 picture had become more bullish and that I would take a bullish bias if we had gotten a bounce at $7,947 and I would be more bullish still if the price could make two consecutive hourly closes above the resistance level at $8,375. This was an OK call as the price did recently make two closes above $8,375 and has continued to advance from there.
I also noted yesterday that we may be seeing long-term buying now. This seems to be the case and we have a simple story of the price continuing to advance firmly and flipping all the resistance levels it exceeds to become new support which in itself is a bullish sign.
I take a bullish bias today above $8,375 until at least $8,703 and I would not look to take any short trades. The risk-on sentiment in the market is probably helping Bitcoin rise in value right now.
Concerning the USD, there will be a release of CPI data at 1:30pm London time.