Last Wednesday’s signals were not triggered, as there was no bullish price action when the support level identified at $34,512 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 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 $32,500 or $30,043.

• 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 bearish price action reversal on the H1 time frame following the next touch of $35,896, $37,353, $39,012, or $40,033.

• 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 although volatility remained relatively very high, there were no clear signs of climax and exhaustion, so as we were trading into the blue sky of all-time highs, there was no reason not to take a bullish bias here.

I also said that bulls should beware of a climax if the price quickly reached the major round number at $40,000.

This was an excellent call, as the price continued to rise by another $7,000 or so before appearing to climax on very high volatility a little way above the all-time high near $42,000.