Yesterday’s signals may have provided long trades at both specified support levels, but the price action specification of “very cautious” probably would have prevented entries for most traders.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be entered at any time.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,074 or $8,976 but be extremely cautious.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,400.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 50% of the position as profit when the trade is $200 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 yesterday that it feels as if the spectacular cryptocurrencies boom may be coming to an end, and the developments of the past 24 hours have pushed me more strongly in the direction of this conviction. All the major cryptocurrencies continue to fall and struggle to hold up anywhere.
Technically, we saw the formerly supportive level of $11,400 flip from support to resistance, which is a classically bearish sign, and confirms that the line of least resistance remains downwards. Although there were bounces at the support levels which were reached yesterday, I wrote they should be Vs or take time to form, neither of which took place, and the price action remains bearish even though we see the support above $10,000 continuing to hold for the time being.
I have a bearish bias, and if the price breaks below $10,000 it could easily fall further to $5,000 in a few hours or days. If there are short-term profits to be made, I don’t see how it could be on anything but the short side.
There is nothing important due today concerning the USD.