My previous BTC/USD signal last Thursday was not triggered.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $65,233 or $64,224.
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 run.
Short Trade Ideas
Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $67,715, $69,239, or $69,823.
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.
Remove 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.
BTC/USD Analysis
In my last BTC/USD forecast last Thursday, I thought that bulls and bears were evenly matched, and the best trade which might set up would be a long trade from a bullish bounce off the support level at $68,690.
This was not a great call, as neither this trade nor any others set up.
The technical picture is somewhat more bearish today, as the price has fallen well back into its comfortable zone of consolidation where it has now spent several weeks after falling strongly.
Drilling down, we can see a bullish double bottom near the support level at $65,233 with the second bottom actually strongly rejecting that level. Bulls are now trying to push the price above $67,715.
I think if the price can get established above $67,715 it will continue to rise to $69,234. I think if we get two consecutive hourly closes above $67,715 without significant upper wicks, and the room for reward to $69,234 is much better than the risk to a good stop loss level, that could be an interesting signal for a long trade.
Another potential long trade might set up if $67,715 holds as resistance and the price falls to bounce again from a rejection of the support level at $65,233.
https://www.tradingview.com/chart?symbol=COINBASE%3ABTCUSD
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
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