My previous BTC/USD signal on 5th June may have produced a losing long trade from the small bounce at the support level at $26,687.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Friday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $26,003 or $24,612.
- Place the stop loss $100 below the local swing low.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 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 timeframe following the next touch of $26,906 or $27,476.
- Place the stop loss $100 above the local swing high.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 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 in my previous BTC/USD analysis on 5th June that although the price was falling within a wide descending price channel, it was not far from the support level at $26,687 which has held well so this could be pivotal – I thought two consecutive hourly closes below that level would see a good short trade opportunity and a further descent to at least $26,264.
This was a good call, as we got those consecutive lower closes, and the price kept falling to as low as $25,349, giving some profit over the hours following the breakdown.
The price remains within the wide descending price channel, and after rising from that low, has been falling again over recent hours after the Bank of Canada’s surprise rate hike hit Bitcoin just like it hit most risky assets.
The price is now close to the support level at $26,003 (very confident with the round number just below), so this level looks likely to be pivotal today.
I, therefore, take a similar approach to what I did on 5th June: a short-term long trade is possible if we see a bullish bounce when $26k is first reached, or a short trade could be taken if we get two consecutive lower hourly closes below $26k, which could then see the price fall as low as the next support level at $24,612, or at least the really important round number at $25k.
I have more faith in the short breakdown trade setting up, as yesterday’s rate hike has created a risk-off market environment.
Concerning the US Dollar there will be a release of Unemployment Claims data at 1:30pm London time.
Ready to trade our daily Bitcoin signals? Here’s our list of the best Bitcoin brokers worth checking out.