Last Wednesday’s Bitcoin signals were not triggered, as there was no bearish price action when any of the identified resistance levels were first hit that day.
Today's BTC/USD Signal
Risk 0.50% per trade.
Trades may only be entered prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $57,334, $56,198, $53,634, or $52,664.
- 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 Ideas
- Short entry after a bullish price action reversal on the H1 time frame following the next touch of or $58,449, $59,280, or $61,240.
- 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 it seemed as if the bullish momentum was slowing down as the price reached an earlier comfort zone between roughly $54k and $57k.
I thought that the thing to watch for next was likely to be whether the nearest support level (identified at $54,398) held or broke down.
I was correct, insofar as the invalidation of that support level, which happened quite quickly, did produce over the next day or two a slightly deeper bearish movement.
However, bullish momentum took off again at the end of the week, starting during Thursday’s New York session.
The price now looks to be making a bullish consolidation, with the resistance at $58,450 looking very pivotal. If the price can get established above that level, it will probably be a good sign that bullish momentum will continue over the short term.
This might be an exciting development, as the price is not far from the all-time high a little way above $61k. If we get a bullish breakout beyond that area, there will be a lot of interest in Bitcoin and a lot of buying which could drive the price considerably higher.
I will take a bullish bias on Bitcoin today if we get two consecutive hourly closes above $58,450.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.