BTC/USD: Long-term bullish trend advancing
Yesterday’s signals produced a profitable long trade from the bullish breakout, from which it may well be wise to exit now as the price is making a bearish retracement.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $13,368 or $12,288.
- Place the stop loss $50 below the local swing low.
- Move 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 run.
Short Trade Idea
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $14,058.
- Put the stop loss $50 above the local swing high.
- Adjust 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 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.
I wrote yesterday that I thought it made sense to look for a long trade, which might be found after a deep retracement to $12,288 or alternatively after a breakout to a new high above $13,368. I was happy to enter a long trade if we had gotten two consecutive hourly closes above $13,368 which we did – this was a good call as it produced about $300 of profit.
Bitcoin is interesting right now as the price is breaking to new long-term highs, giving bulls a statistical edge.
I remain bullish on Bitcoin and I see a long trade from a bullish bounce at the new higher support level at $13,153 as a great potential new long trade opportunity.