Last Monday’s Bitcoin signals produced a nicely profitable short trade from the bearish reversal at $36,792 and it is probably worth closing out any open remainder of this trade by now.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 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 $32,432 or $28,607.
- Put the stop loss $100 below the local swing low.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.
Short Trade Ideas
- Go short after a bullish price action reversal on the H1 time frame following the next touch of $34,968 or $36,792.
- Put the stop loss $100 above the local swing high.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 50% of the position as profit when the trade is $100 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 last Monday that the technical picture had become more confusing. All we could see in the price chart then was a short to medium-term new bearish price channel, while the longer-term picture was a burst bubble and the price consolidating in a shoulder just above the $30k area. Therefore, I thought that over the short-term lower prices look likely, so I was seeking short trades from bearish reversals at any resistance level from $37,283 or lower.
This was a good call which produced a profitable trade as we got the reversal and the price falling to a new two-week low.
Although we saw the price make a new low some hours ago, it has bounced back quite strongly and even printed new higher support levels, with the lower one at $32,432 now looking attractive for a long trade.
I have seen the area close to $30k as an important pivotal point for some time now, with the area likely to give either a buying opportunity (which we may be seeing right now), or a selling opportunity if it breaks down. There is likely to be more potential quickly following a bearish breakdown.
Therefore, I am happy to take a long trade if we get a bullish bounce at $32,432, or if we get two consecutive lower hourly closes below $30,000.
Concerning the USD, there will be a release of U.S. Crude Oil Inventories data at 3:30pm London time followed by the 10 Year U.S. Treasuries Auction at 6:01pm.