BTC/USD: Pivotal resistance at $7,228
Last Thursday’s signals produced a short trade from the rejection of the resistance level identified at $7,228 and this trade would still be open although at a floating loss.
Today’s BTC/USD Signals
Risk 0.50% 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 $6,576, $6,386 or $6,293.
Put the stop loss $50 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 $7,228 or $7,670.
Put the stop loss $50 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 long as the price held up above $6,600 the technical factors were indicating higher prices. I was ready to take a bullish bias if we had gotten two consecutive hourly closes above $6,800. This was a good call as we did get that sustained break and the price is a few hundred dollars higher than there by now and is continuing to rise.
The technical picture and general outlook are more bullish as risk sentiment has continued to improve with rising stock markets. There is nothing to stop the price rising higher except the nearest resistance level at $7,228 which has been pivotal for a while. I think the key thing to watch will be how the price reacts when this level is reached again. A sustained break above it would be a bullish sign so I would take a bullish bias if we get two consecutive hourly closes above that level later today.
There is nothing of high importance scheduled for today concerning the USD.