Yesterday’s signals were not triggered, as there was no bullish price action at either the trend line or at $6,739.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken until 5pm Tokyo time, during the next 24-hour period only.
Short Trades
· Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,918 or $7,250.
· Put the stop loss 1 pip above the local swing high.
· Adjust the stop loss to break even once the trade is $200 in profit by price.
· Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Long Trade
· Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,638.
· Put the stop loss 1 pip below the local swing low.
· Adjust the stop loss to break even once the trade is $200 in profit by price.
· Take off 50% of the position as profit when the trade is $200 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 yesterday that I has a bullish bias. I was completely wrong, the price actually fell quite heavily, printing new resistance on its way down. The price chart below shows an increasingly bearish technical picture: new resistance at the psychological level of $7,250 and below that around $6,900, all held down by a medium-term bearish trend line which is very clear and obvious. In addition, there is a long-term bearish trend, and generally negative factors working against the wider image and practicality of cryptocurrencies. There are no key support levels above $5,700 so the price has plenty of room to fall even further. It all adds up to a strongly bearish bias, there are no reasons to be bullish at all. Having said that, the price action is somewhat choppy, so there could be sizeable temporary upward stabs.
There is nothing due regarding the USD.