Yesterday’s signals were not triggered as there was insufficiently bullish price action when both the support levels were hit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be taken before 5pm Tokyo time today, over the next 24-hour period only.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $4,137.
Place 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.
Short Trades
Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,982 or $5,187.
Place 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.
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 the situation looked more bearish still now, with the price reaching yet lower 1-year lows. I took a bearish bias below $4,982 and this worked out very well as the price has continued to fall sharply to even lower 1-year lows close to $4,000. The price of Bitcoin has now fallen by almost 80% since December, and I notice my twitter feed has a lot less tweets from people claiming Bitcoin is about to change the world! There is no reason not to be bearish, but watch out for the support at $4,137.
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There is nothing important due today regarding the USD.