Bulls Push Price to 3-Month High

  


The price again is trading above $50k area.

Last Wednesday’s BTC/USD signal was not triggered as there was no bearish price action when the resistance level at $48,675 was first reached that day.

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 $51,364 or $49,161.

  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $54,864.

  • 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.

See also  What U.S. Jobs Report Can Tell Us About Fed And Dollar’s Direction?

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.

Advertisement

BTC/USD Analysis

I wrote last Wednesday that Bitcoin was looking bearish as it had become established within a symmetrical bearish price channel. I was looking for a breakdown below the support level at $46,595 or for a long scalp from that level. The level was not reached again after my signal, so the forecast was not useful but was enough to keep out of trouble.

See also  Polkadot Suddenly Slumps to Late August Juncture

The technical picture has changed dramatically since last Wednesday, with the price breaking bullishly out of the price channel later that day. It has been moving up ever since with relatively strong bullish momentum. Another bullish sign is that it seems to have got well established above the psychological round number at $50k to reach a new 3-month high.

The short-term price action also looks quite bullish so I think it will be best to look for a long trade here today. A retest of the nearby support level at $51,364 followed by a bullish bounce could give that opportunity. The price has plenty of room to rise as there are no obvious resistance levels before $54,864.

See also  Bitcoin nears one-week high but buyers still have much to prove to sustain the bounce

BTC/USD

There is nothing of high importance due today concerning the USD. It is a public holiday today in the USA.



Read more here