Last Wednesday’s Bitcoin signals were not triggered as none of the key support or resistance levels were reached that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $33,617 or $32,438.
- 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $36,279, $37,198, or $38,218.
- 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 Wednesday that much was likely to depend here upon whether the new support level at $32,154 held. This was not harmful as that level was not reached that day, but it turned out a few days later that the real pivotal point was $30k, where we saw the price make a decisive bullish bounce over the weekend.
Bitcoin and crypto in general seemed poised for a significant strong bearish breakdown once the price here got established below $30k. This scenario seemed to be close but the firm bounce and sequence of higher lows we have seen since Saturday suggests that this scenario may now not play out after all. Bulls are certainly in control for now. However, we have seen the price struggle to rise above the $35k are over the past week or so, which may prove to be resistance and cap the current rise, even before the key resistance level at $36,279 is reached.
I think the most likely scenario today is a consolidation above the nearest support level without the next resistance level being reached.
I am ready to take a long trade if we get a bullish bounce at $32,438 later today.
It is worth noting that Bitcoin seems to be facing weaker overhead resistance than Ethereum, which is another sign to look for a long rather than a short trade here.
In the unlikely event of the price getting established above $36,279 over the next 24 hours, that would be a strongly bullish sign.
There is nothing of high importance scheduled for today concerning the USD.