Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $116,031, $114,962, or $114,684.
- 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 bullish price action reversal on the H1 timeframe following the next touch of $117,399 or $120,055.
- 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
In my recent BTC/USD forecast last Monday, I thought that the picture looked more bullish with the support level at $114,771 likely to be pivotal.
This was a good call as this price level, while not holding exactly, did support the low of the day, leading to a rise to higher prices.
I would now call Bitcoin weakly bullish, as it is trading at a September high, but it faces a fairly solid resistance level at $117,399. I think this level is quite likely to hold today at least until the Federal Reserve’s policy meeting and data release, but I would not want to take a short trade from a rejection of that level during this period.
I would take a long trade from a bullish bounce off $116,031. Some traders might be interested in taking a long trade following a decisive bullish breakout above $117,399.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, the Federal Reserve will be releasing the Federal Funds Rate, Economic Projections, and Rate Statement at 7pm, followed half an hour later by the press conference.
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