My previous BTC/USD signal on 30th October was not triggered as none of the key support or resistance levels were reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $34,669.
- 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 $35,550.
- 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 last week that Bitcoin was stuck in a consolidation pattern between $33,445 and $35,000. I thought that the resistance at $35,000 was more likely to hold than to break.
This was a good call for that day, as the price just consolidated within those levels.
The technical picture now is more bullish, as the price has advanced a bit beyond $35k before falling back, with that round number now effectively erased as an infective resistance – it has now become a zone of consolidation where the price is comfortable to chop around.
The price chart below shows the current action is dominated by a narrowing triangle pattern, and although the action above $35k is quite bearish, the triangle seems more supportive than resistant as there is a support level quite confluent with its lower edge.
It therefore seems likely that the support level at $34,669 is going to be today’s pivotal point. There is a long-term bullish trend which remains valid, so a long trade from a bullish bounce off that level could make sense.
Another bullish factor which might impact Bitcoin is the news that Hong Kong is considering allowing spot crypto ETFs.
Alternatively, if the price breaks down convincingly below the support level at $34,669, that could be a bearish sign, so two consecutive lower hourly closes below that level could be used to trigger a short trade entry, as the price would have room to fall a lot further before meeting other support levels.
There is nothing of high importance scheduled today concerning the US Dollar.
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