BTC/USD: New bullish price channel
Yesterday’s signals were not triggered as there was no appropriate price action at any of the levels which were reached to trigger a trade entry signal.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may be entered prior to 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,576, $6,386 or $6,293.
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 Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,228.
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 every reason to be bearish, but I would wait for a break below $6,293 evidenced by two consecutive hourly closes below that level on rising short-term volatility before taking a bearish bias.
Unfortunately, this was a bad call as we did get the bearish set up, but the price then reversed bullishly quite strongly, to create a major change in the technical picture.
The price chart below shows we have seen a bullish breakout above the $6,600 price area which I had seen as pivotal, and importantly, a new bullish price channel can be drawn.
I do expect risk sentiment will generally deteriorate in markets soon, which should logically have a bearish impact on Bitcoin, but as long as the price holds up above $6,600 the technical factors are indicating higher prices. If the price can get established above $6,800 that would be an even more bullish signal, and I would take a bullish bias if we get two consecutive hourly closes above that price level later.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.