BTC/USD: Bullish Move Weaker but Continuing
Yesterday’s signals may have produced a losing short trade from $8,703 and unfortunately the bearish price action at $8,893 was too weak to give a short trade entry signal, but it accurately capped the swing high.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,546, $8,375, or $8,216.
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 $8,893, $9,904, or $9,233.
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 yesterday that I took a bullish bias above $8,375 until at least $8,703 and I would not look to take any short trades. This was a great call as the price rose to $8,703 and beyond, actually it hit the next resistance level where it reversed almost to the pip. It was however a good idea not to take any short trades as the only one which set up was a losing trade.
The technical picture is still bullish, with higher support formed at $8,546 and the price has continued to advance. However, bulls need to be aware that we also have new lower resistance at $8,672 which is likely to be a pivotal level now.
I still do not want to look for short trades so would look only to buy at support levels upon the first sign of a bullish turn after a retracement, such as $8,546. I would be more bullish above $8,672 and even more so above $9,000.
There is nothing of high importance due today concerning the USD.