BTC/USD: Support near $7,000 looks strong
Last Thursday’s signals were not triggered as there was insufficiently bearish price action when the resistance level at $7,182 was hit, although it did effectively cap the high of the day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Tuesday.
Long Trade Idea
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,945.
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.
Remove 50% of the position as profit when the trade is $50 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 last Thursday that the technical picture seemed to be becoming more bullish as the upper trend line of the bearish wedge had been broken. However, I also thought that the resistance level at $7,182 is just too strong to break.
This was a good call as the price did move up before being held by that resistance level at $7,182.
That precise resistance level has been invalidated so the price has plenty of room to rise but continues to consolidate bullishly above the supportive area confluent with the round number at $7,000.
I would be prepared to take a long trade from a bounce at the support level at $6,945 and I would also be bullish if we get two consecutive hourly closes above $7,300 later today. I would not look for any short trade.
There is nothing of high importance due today concerning the USD.