Bitcoin: Bullish breakout beyond $8k pivotal point
Yesterday’s signals were not triggered as there was no appropriate price actions at any of the key levels which were reached.
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 $7,968 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 $8,375, $8,703, $8,893.
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 it may be too early to short so the best approach will probably be to take a bullish bias but only if the price can get established above the current nearest resistance level at $8,002 with a couple of consecutive hourly closes above that level. This was a good call as trading this breakout above $8,002 would have netted profit.
The picture now is more bullish and this strong move above the $8,000 area is technically significant.
It looks right now as if the price is making a bearish retracement, but will probably find support and begin rising again, so I would take a bullish bias if we get a nice bounce at any of the support levels I have identified. Watch out also for possible new higher support forming at $8,200.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time.