Yesterday’s signals produced a profitable trade above $12,288.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5 pm Tokyo time Friday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $12,288, $12,105, $11,861, or $11,553.
- 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.
- Remove 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $13,218 or $14,058.
- 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.
- Remove 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 due to the previous day’s exponential, strong advance, I would take a long trade if we had gotten two consecutive hourly closes above the nearest resistance level at $12,288 as the price had a lot of room to rise before meeting the next resistance level at $13,218.
This was a great call as it got us in long quite close to $12,288 and the price went on to top at $13,218 just as I had been expecting.
Yesterday again saw another exponential rise in the price of Bitcoin, and in fact, the price has broken to a new 3-month long-term high, which is a bullish sign.
The price has made quite a strong bearish retracement from $13,218 so I expect that this resistance level will hold today.
There is a clear long-term bullish trend so it may be wisest to look for a long trade following a bullish bounce at the support level at $12,288 if it is reached later.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30 pm London time.