Last Monday’s Bitcoin signals were not triggered, as there was no bearish price action when any of the identified resistance levels were first hit that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $52,664, $51,364, or $50,601.
- Place the stop loss $100 below the local swing low.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
- Go short after a bullish price action reversal on the H1 time frame following the next touch of or $55,190, $56,579, or $57,525.
- Place the stop loss $100 above the local swing high.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 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 Monday that it seemed that the price was making a bullish consolidation, with the resistance at $58,450 looking very pivotal. I thought that if the price could get established above that level, it would probably be a good sign that bullish momentum would continue over the short term.
This was not a great call, as although the price did get established above $58,450 early in the London session that day, the direction quickly turned bearish, and the price has been falling ever since.
The technical picture has now become more bearish, with the price descending over recent days and printing new stairstep resistance levels, flipping support to become new probable resistance.
Despite this seeming bearishness, the support level at $52,664 looks especially strong, and after reaching near there over the past day, the price has made a bullish bounce, and is now coiling just below the nearest resistance level at $55,190 which is looking like it will be today’s pivotal point. If the price can get established above this level, it will be a bullish sign and suggest the trend of the past few days will have ended. However, it may be that the price fails to rise here and makes instead another bearish turn.
Therefore, I will be happy to take a short trade from a bearish reversal at $55,190 targeting the nearest support level, or a long trade from the support level at $52,664 which could be better for a longer-term trade.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change forecast data at 1:15pm London time.