BTC/USD: Selling pressure remains
Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $8,000 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered 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 $7,698, $7,477, or $7,228, or $7,043.
Put the stop loss $50 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 $8,004, $8,162, or $8,375.
Put the stop loss $50 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 I would take a bearish bias if the price retraced to the $8,000 level and prints a bearish rejection. The price broke through this level easily, so this forecast was only useful enough to keep out of trouble.
It seems that the support just below $7,700 continues to hold as markets, while volatile, seem to be finding some relative stability in consolidation, although in quite wide price swings.
The best I can say here is that Bitcoin remains vulnerable to risk-off panic, but the longer the price remains consolidating above $7,700 the greater the chance that at least a medium-term bottom has been reached. A long-term long trade from $7,700 could have an edge, but over the shorter-term, shorting reversals following retracements to the resistance levels given above is likely to be a better strategy.
Concerning the USD, there will be a release of CPI (inflation) data at 12:30pm London time.