My previous BTC/USD signal on 13th March was not triggered as none of the key support or resistance levels were hit that day.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades may only be taken prior to 5pm Tokyo time Wednesday.
Long Trade Idea
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $59,544.
- 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 $66,480, $68,852, or $72,212.
- 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 Wednesday that we were seeing some bullish short-term price action, so there were signs that the price was going to make another record today. I saw two consecutive higher hourly closes above the all-time high of $73,054 as a potentially good entry signal. This gave a long trade entry, but the trade went nowhere, with the price basically unchanged at the end of the day. I was at least correct about the price rising to make a new record high.
The technical picture is now considerably more bearish as the price continues to fall away from the record high last week. The short-term price action is notably bearish, and there are no obvious support levels below until $60,000 is reached. We are seeing consecutive lower candlesticks on the hourly chart, and I think that if this bearish pattern continues, we are likely to see the price fall strongly to the $60,000 area.
I think the best approach today will be to go short on strong bearish momentum, targeting the $60,000 price area.
There is nothing of high importance due today regarding the US Dollar.
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