Last Thursday’s signals were not triggered, as there was no bullish price action when the price hit $8,976.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades may be taken at any time.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,347, $6,951 or $6,815.
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 Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,913 or $9,508.
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
My bearish bias has proven to be correct. The situation looks bad for Bitcoin, which has now fallen by approximately 60% from its high price reached a few weeks ago. Fibonacci aficionados might wish to get excited about the upcoming 61.8% retracement level, and to be fair there is cluster of support levels in this area below, but a 60% drop after a meteoric rise does not look healthy for potential buyers of any asset. Furthermore, Bitcoin has not seen such a drop for several years, and other cryptocurrencies have also experienced severe price drops.
Technically, the picture is dominated by bearish trend lines. There are minor signs that the price may be bottoming out just below $8,000 but I don’t feel optimistic about that outcome. It looks as if the price will continue to move down a little further at least. I would be extremely cautious about taking any long trades just yet. I maintain a bearish bias and prefer a potential short trade from $8,913.
Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.