BTC/USD: Breakout above key level at $7,228
Yesterday’s signals were not triggered as there was no bearish price action when the price reached the key resistance level at $7,228.
Today’s BTC/USD Signals
Risk 0.50% 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 $7,228 or $7,047.
Place the stop loss $50 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 $7,670 or $8,004.
Place the stop loss $50 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 there was nothing to stop the price rising higher except the nearest resistance level at $7,228 which had been pivotal for a while. I thought that a sustained break above it would be a bullish sign so I would take a bullish bias if we had gotten two consecutive hourly closes above that level.
This was a good call as the price rose. I was right to look to the bullish side. The price is a bit higher now after getting established above $7,228 yesterday.
The outlook continues to be bullish technically and this is also supported by better risk sentiment in markets generally which is causing a sell-off in the USD. The important trend lines shown in the price chart below are all bullish too.
I will remain bullish above $7,228 and if the price rises later to get established above $7,400 that would be an even more bullish sign.
There is nothing of high importance scheduled for today concerning the USD.