Last Wednesday’s signals were not triggered, as the bullish price action took place below the support level identified at $23,255.
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 $26,012, $25,000, or $24,016.
Put the stop loss $100 below the local swing low.
Adjust the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.
Short Trade Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $30,000.
Put the stop loss $100 above the local swing high.
Adjust the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 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 Wednesday that the price getting established above the former resistance level at $23,255 was a bullish sign. I thought that there were no obvious resistance levels above the price except maybe the all-time high just above $24,000 and the huge major round number and psychological level at $25,000.
This was a good call as the price exploded to the upside over the Christmas holiday, rising by approximately 20% over just a few days to hit a new all-time record high just below $28,500 yesterday before making a deep retracement to the new nearest support level at $26,012.
The situation is clearly bullish, and Bitcoin has made a very strong bullish breakout move over recent days. Technically, it remains bullish as long as the price stays above the support at $26,012. I see Bitcoin as still a good buy if it makes a bullish bounce after pulling back to this level.
Bitcoin may have further to run over the last few days of 2020 this week, even though it has already made such a huge movement. It is important to beware of the extremely high volatility when trading Bitcoin – it is quite possible that we might see a movement either up or down of as much as 20% in a single day.
There is nothing of high importance due today concerning the USD.