Yesterday’s signals were not triggered as the price never reached $3934.40.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior 5pm New York time today.
Long Trades
- Go long after bullish price action reversal on the H1 time frame following the next touch of $4114.55, $3934.40, $3872.58, or $3706.34.
- Put the stop loss 1 pip 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.
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
We still have an extremely bullish situation, with the price recently trading in blue sky at new all-time highs just a few hours ago, thanks to a huge amount of public interest in investing or speculating in this crypto-currency on the long side. There is a widespread feeling among analysts that this pair is in a dangerous bubble which could burst spectacularly. This may be the case, but that does not mean that traders cannot enjoy the party and make excellent profits while it lasts, provided a hard stop loss and low leverage are used.
Technically, we are now seeing a topping formation from a new all-time high, with the price falling close to two supportive trend lines. Either line may provide support and therefore a good long entry opportunity, but the lower trend line looks especially attractive as it is confluent with a new support flipped from resistance level at $4114.55.
There is no reason to consider any short trades yet.
(Click on image to enlarge)
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