My previous BTC/USD signal on 1st October may have given a losing long trade from the initial bullish rejection of the support level at $61,338.
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades must be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $61,229 or $59,401.
- Put the stop loss $100 below the local swing low.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $63,418, $64,165, or $64,613.
- Put the stop loss $100 above the local swing high.
- Move the stop loss to break even once the trade is $100 in profit by price.
- Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
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.
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BTC/USD Analysis
I wrote in my previous BTC/USD forecast over one week ago that Bitcoin was looking dull and seemed just as likely to bounce off either a support or resistance level. This was not a very accurate call as the price fell quite strongly over the course of that day.
Little has changed over the past 10 days since I made that forecast. Bitcoin and continued to trade within small swings, giving neither a convincingly bullish nor a convincingly bearish outlook.
It used to be that Bitcoin gave traders a lot of action, but those days are clearly behind us now. There is more activity right now in the traditional Forex market, and in some commodities and major stock indices.
I think that again, the only way to trade Bitcoin today is to look for a long trade off the support at $61,229 or a short trade off the resistance at $63,418. Do not linger in such a trade for long, conservative profit taking is likely to work best.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be a release of the FOMC Meeting Minutes at 7pm London time.
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