Last Thursday’s signals produced a short trade from the bearish rejection of the resistance level at $13,218 which produced a small amount of profit.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Tuesday.
Long Trade Idea
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $12,288.
- 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.
- 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 run.
Short Trade Idea
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $14,058.
- 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.
- 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 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 last Thursday that I expected the resistance level at $13,218 would hold over the day.
I noted the clear long-term bullish trend so thought it would be smart to look for a long trade following a bullish bounce at the support level at $12,288.
The support level was never reached, but I was correct about the resistance level at $13,218 holding when it was touched later that day.
The former resistance level at $13,218 has now been invalidated and the price has room to rise all the way to $14,058 before hitting another obvious resistance level. The price is also in a long-term bullish trend and recently reached another new multi-month high.
The technical signs are all bullish, but the price is just moving up slowly and has been for a few days now.
I think it makes sense to look for a long trade, but there are no clear entry points until $12,288 so it may be wise to stand aside from trading Bitcoin today until the picture becomes clearer.
There is nothing of high importance due today concerning the USD.