Last Thursday’s signals might have produced a long trade entry following the bullish rejection of the support level identified at $6,793, which would have produced a spectacularly profitable trade.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, over the next 24-hour period.
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.
Last Thursday this pair looked very difficult to trade. Ironically it then made the strongest speedy directional move for some time, shooting up by more than 10%. Interestingly, after the movement, the price has held up and continued to advance further, which is a bullish sign. It is not clear there is any convincing explanation for the sudden move – a U.S. tax deadline is due this week, which is a possible factor, and twice as much Bitcoin was traded last Thursday as typically changes hands.
I now take a bullish bias, with the nearest support below looking very strong at $7,758. There are already signs that the price is being bought from the round number at $8,000 which might well have been today’s low price.