My previous BTC/USD signal last Monday produced a nicely profitable long trade from $85,369.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $85,369 or $81,203.
- 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 $89,996, $91,589, or $94,196.
- 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.
Top Forex Brokers
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 on Monday, I thought we were coming towards a decisive moment for Bitcoin, as the recent price pattern could 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.
I thought that a break below $87,884 would trigger a further decline.
I was a little bit right about that, but it seems more like the key levels to watch out for now are about $85,000 and $90,000 – a break beyond either should see a meaningful continuation.
The significant change it that the consolidation pattern is now flat and square, so it looks very even between bulls and bears right now.
If there is a bearish breakdown below $85,000, there is still a very key support level near $81,000 that could hold.
I think if we do get that breakdown, the price will test the support level near $81,000 which is likely to be an extremely pivotal point for Bitcoin.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be releases of CPI (inflation) and Unemployment Claims data at 1:30pm London time.
Ready to trade our daily Forex signals? Here is our list of the best MT4 crypto brokers worth reviewing.