BTC/USD: Strong resistance levels above price channel
Yesterday’s signals were not triggered as there was no bullish price action when $8,828 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,162 or $8,004.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,086, $9,171, $9,384, or $9,600.
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 was very interested in a short trade and saw a generally bearish outlook for Bitcoin.
This was an indifferent call, as the price has gone sideways over the past day.
Some of the key levels nearby have been invalidated, but the price remains within its bearish channel, although it is testing the top of this channel.
Even though the price may break above the top of the descending channel shown within the price chart below, it would be hard to be bullish as there are still a few key resistance levels just above that area which are likely to suppress the price even if we do get a breakout.
For these reasons, I continue to look towards short trades, ideally from the upper descending trend line of the price channel which is being tested as at the time of writing.
There is nothing of high importance due today concerning the USD.