My previous BTC/USD signal on 8th December was not triggered.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken prior to 5pm Tokyo time Tuesday.
Top Regulated Brokers
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $89,507, $87,884, or $85,369.
- Place 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
- Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $91,589, $94,196, or $97,058.
- Place 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
In my last BTC/USD forecast exactly one week ago, I thought the picture was starting to look more bullish, and I was ready to go long if we saw two consecutive higher hourly closes above $91,924 with neither hour having a strong upper wick.
This was a good call insofar as the price exceeded $91,924 then quickly dropped and made a major move down, so I was correct at identifying the day’s pivotal point.
The technical picture now has become very interesting – the recent price pattern can be seen as both a bearish wedge, or as a bullish “square root” pattern, with a higher low and then two equal higher lows above that.
How to tell which is which?
- If the price gets established above $94,196 that will be bullish, and we will be likely to then see a further upwards move.
- If the price gets established below $87,884 then we will probably see a further decline. If the price goes on to break below $80,000 then we could see a very significant drop.
This means that as long as the price remains between $94,196 and $87,884 it will probably be a good idea to avoid trading Bitcoin.
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
Ready to trade our free Forex signals? Here is our list of the best MT4 crypto brokers worth checking out.