Last Thursday’s signals may have produced a losing long trade from the bullish hourly candlestick which rejected the support level identified at $6,811 during last Friday’s Asian session.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am New York time until 5pm Tokyo time, during the next 24-hour period.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,335.
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.
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 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 maintained a bearish bias last Thursday and was proven to be correct, as the price has continued to fall and the key support level at $6,811 has been invalidated. The price keeps carving out short-term bearish trend lines which act as resistance and suppress the price. The price has now reached levels not seen for a while (in Bitcoin terms) and has fallen by something like 65% / 70% since last December’s highs. There is a bear market in Bitcoin and no obvious sign of it coming back any time soon: this might be hard to swallow for some, yet it is time to face facts. The next support level is a long way down, in the $5,600 area. I keep my bearish bias but would become more bullish if the price can get established above $7,335.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.