Last Monday’s BTC/USD signal was not triggered, as there was no bearish price action when the price first reached the resistance level identified at $67,017.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $65,601 or $62,251.
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 Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $66,234.
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 we had a strongly bullish technical picture, with the ascending price contained within a new symmetrical price channel, although I also noted the risk that the price would quickly fall back from a new high.
This was a good call as the price rose strongly that day by approximately 5% before dipping. It then went on to briefly trade at a new record high later in the week at $69k before making a deep fall. It has now recovered from the key support level at $62,250 which I noted last week could act as key support.
The technical picture is now uncertain regarding direction – we have seen a bullish move stall just under the only clear resistance level at $66,234. There is new support just below at $65,601 but I do not have much faith in it.
I am ready to stand aside for the time being here unless the price falls again to $62,251 where another bullish bounce would be an excellent long trade entry signal. Alternatively, if the price soon gets established above $66,234 and begins to rise bullishly from there, odds should also move into bulls’ favour.
A short trade from a reversal at $66,234 is also possible but I would not be comfortable with that as I think any fall from there will be likely to quickly find support.
There is nothing of high importance scheduled for today regarding the USD.