Bitcoin: Bearish near new 6-month low
Yesterday’s signals were not triggered, as there was no bullish price action when the support level identified at $6,786 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,441, $6,171, or $5,950.
Put 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 ride.
Short Trade Ideas
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,786, $7,221, or $7,269.
Put 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 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 price action continued to look bearish, so I thought we were likely to see $6,786 reached which would probably be the pivotal point. I wanted to take a bearish bias again here after a couple of hours consecutive closing prices below $6,786.
This was a good call as the price continued to fall and is still lower than it was after 2 hours closing below that former support level.
The price came very close earlier to reaching a new 6-month low price which is a bearish sign.
Bitcoin continues to look bearish on every time frame and shows signs of reaching still lower prices.
I remain bearish here below $6,786 but would want to see an hourly close below $6,580 first.
There is nothing of high importance due today concerning the USD.