Last Thursday’s signals produced a losing short trade from the bearish rejection of the resistance level identified at $3,379.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Tuesday.
Long Trade
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,274.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 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 $3,470, $3,428, or $3,379.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 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 last Thursday that I was not particularly bearish, but the odds did seem to be with the bears, so a strong reversal at a rejection of $3,379 would be a bearish sign that lower prices were about to happen, if it set up. It did set up and was followed by a downwards move on low volatility. Unfortunately, the accurate call was interrupted by the kind of sudden, strong, out-of-the-blue reversal that Bitcoin has been prone to over recent months, with the price rising by more than $300 in only a few hours. The picture is more bullish now, and the three former resistance levels have now probably become support. The price is within a relatively wide area without any key levels, so short-term direction is very hard to predict now. I have no directional bias right now.
There is nothing of high importance due today regarding the USD.