Bitcoin: Still bullish above $8,552
Last Thursday’s signals were not triggered, as there was no bearish price action when $8,893 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 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 $8,552, $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 $8,766 or $9,011.
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 as the major movement was still upwards, I thought it was wise to keep a bullish bias as long as the support at $8,546 continued to hold. This was a good call as the price remained above that level and advanced all the way to the $9,200 area before falling quite sharply.
Technically, the price is still bullish as despite the drop, the key support level (which can now be adjusted slightly to $8,552) continues to hold. This is evidence that this level is likely to be very pivotal. Therefore, I would still look for bullish trades from bounces at this area but would see the picture as less bullish overall below it.
As Bitcoin is at relative lows and is being bought as 2020 begins, I think there is a good chance we are seeing the start of a long-term price rise. I think the best opportunity would be a long trade from a bullish bounce at $8,552.
There is nothing of high importance due today concerning the USD. It is a public holiday in the USA today.