Yesterday’s signals may have triggered a short trade entry following the large outside doji candlestick which formed on the hourly chart rejecting the resistance level at $4,100. This trade now looks very uncertain so it might be wise not to hold on to any short if it is showing a loss now.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm Tokyo time today.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,914 or $3,741.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is $200 in profit by price.

  • Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,100 or $4,373.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is $200 in profit by price.

Take off 50% of the position as profit when the trade is $200 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

I wrote yesterday that the signs were all weakly bullish and I would take a bullish bias later if there was a bullish bounce at $3,914. A sustained break above $4,100 would be a more bullish sign yet. This was a good call as the technical bullishness has held, although the price was unable to break above the resistance level at $4,100 which would have been a more strongly bullish sign. So, the situation here is unchanged: I would be bullish following a healthy bounce at $3,914 or following a sustained break above $4,100. The price has room to rise beyond $4,100 for some way until it meets the next resistance level. Risky assets are generally rising right now, and that tide could help lift the price of Bitcoin by a few hundred dollars.

BTC

Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.


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