My previous BTC/USD signal last Tuesday was 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 may only be entered before 5pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $29,344 or $28,810.
- Put 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 ride.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $29,681, $29,867, or $30,092.
- Put 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 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 in my previous BTC/USD analysis on Tuesday that after the price made a small head and shoulders pattern which seems to have made a short-term bullish rejection of the round number at $29k as support, there might be a chance for a long scalp despite the price being well-established within a longer-term descending price channel.
In fact, the price hardly moved that day and did not reach any key levels, but I was on the right track as the direction over the past few days has been weakly upwards.
We see the price rise within the bearish channel and print new higher support at $29,344 which might be a pivotal point today. However, it is hard to see the price going much higher, as we have so many resistance levels close by, plus the upper trend line of the descending channel, which look very likely to keep suppressing the price.
Due to the bearish pressure, I think the best opportunity which might set up here later today will be a short trade from a convincing reversal at any of the resistance levels. If we see a deeper rise and a rejection of the $30k area, I think that could be a fantastic entry point.
However, over the very short-term, I would not be surprised to see the price rising a little higher from its current level.
Concerning the US Dollar, there will be releases of US Advance GDP and Unemployment Claims data at 1:30pm London time.
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