Yesterday’s signals were not triggered as there was insufficiently bullish price action when the level at $2643.45 was reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
- Go long after bullish price action on the H1 time frame following the next touch of $2400.00.
- Place the stop loss 1 pip below the local swing low.
- Adjust 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 ride.
Short Trade 1
- Go short after bearish price action on the H1 time frame following the next touch of $2611.42.
- Place the stop loss 1 pip above the local swing high.
- Adjust 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 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
Yesterday saw a reasonably strong break down below the closest anticipated support level, with the origination of the bearish move being the upper channel trend line, as shown in the chart below. The price is now established within a bearish channel, but I would not put a lot of trust in the lower trend line. The short-term outlook is bearish, the natural movement of the price is downwards, yet the price is also approaching a key round number which has also previously acted as support and resistance at $2400.00, so a bullish turn here is very possible. A break below that level would be a very bearish sign. Above, there is new key resistance at $2611.42, and if this level is hit first before the support, and produces a bearish turn, it could be an excellent short trade entry.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm.