Last Thursday’s signals were not triggered as none of the key support levels were reached during that session.
Today’s BITCOIN/USD Signals
Risk 0.75% per trade.
Trades may only be entered up until 5pm New York time today.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4400.00, or $4185.67.
Place the stop loss 1 pip below the local swing low.
Adjust 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 ride.
Short Trade 1
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4779.06.
Place the stop loss 1 pip above the local swing high.
Adjust 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 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.
BITCOIN/USD Analysis
After peaking just below the psychologically key $5000 level at the end of last week, and making new all-time high prices in the process, Bitcoin is now in its strongest bearish retracement for approximately 2 weeks. There is also a flipped support to resistance level above at $4779.06. This paints a more bearish picture, but it is nothing at all for bulls to get panicky about. It looks like a healthy retracement within a strong bullish trend, and therefore we are likely to get a good buying opportunity. This may come if a double bottom is convincingly printed at $4400.00, but if that level breaks down, we are likely to fall further to at least $4185.67, which would be a very attractive level at which to get in if there is a bullish reversal there.
