My previous BTC/USD signal last Thursday produced a profitable short trade from the bearish rejection of the resistance level which I had identified at $29.681.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $29,223, $28,810, or $28,626.
- 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 Thursday last week that it was very difficult to see Bitcoin getting much higher for two reasons:
- The strong resistance at $31k has again held firm, and the price fails again and again whenever it gets close to that area.
- Markets were seeing a selloff over recent days in risky assets such as stocks and Bitcoin.
I was looking to enter a short trade from a bearish reversal at $29,681 and this set up and produced a profitable short trade.
The technical picture is still dominated by the gently bearish and wide price channel, but we have also seen a new support level emerge at $29,223 which has produced some strong buying and short-term bullish momentum, although it is starting to look as though bulls are running out of steam here. It would not be a surprise if the price turned bearish at its current peak as this area was infective when last reached some hours ago.
The support level at $29,223 could be pivotal today, and as there was such strong buying below it, I will only look for a long trade if we get a bullish bounce at this level. I see short trades as only likely to work out if taken from a reversal at a resistance level above the current price.
There is nothing of high importance scheduled today concerning the US Dollar.
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