Yesterday’s signals produced a long trade entry from the bullish rejection of the support level identified at $16,000, but this trade should probably be excited within the next couple of hours unless the price makes a convincing new all-time high within that time.

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades must be taken before 5pm New York time today only.

Long Trades

• Go long after a bullish price action reversal on the H1 time frame following the next touch of $14,138.60, $12,800.21 or $11,815.43.

• Put 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 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.

BTC/USD Analysis

I wrote yesterday that I had a bullish bias, but I noted the slowing pace of the rise and that the support level at $16,000 is starting to look very key to next major movement. We had the bullish bounce at $16,000 yet there are signs of selling at and above $17,000 which make me nervous for bulls. If this leg up does not expand quickly, the price is likely to turn around. If this happens and $16,000 breaks down, we could see a fast move down to $14,000 or so over the next day. Bulls who are long for short and medium-term trades should be cautious today and watch the price very carefully. I have a very cautious bullish bias above $16,000. If the price quickly rises to make a strong new all-time high, I would become strongly bullish again.

(Click on image to enlarge)