My previous BTC/USD signal on 4th July was not triggered.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades may only be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $58,497, $56,942, or $55,463.
- 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 bearish price action reversal on the H1 timeframe following the next touch of $59,366, $60,632, or $61,180.
- 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.
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BTC/USD Analysis
I wrote in my previous BTC/USD forecast today on 4th July that Bitcoin had arrived at the support level of $58,309 which was very important technically – I thought that a break below this level would see the price have room to fall quickly as far as the $55,000 area.
This was a good call as it is exactly what happened over the following day, providing a profitable short trade if taken after the breakdown.
The technical picture now has become more bullish after the price reached a low near $53,000. We saw a significant first higher swing low at $54,826. However, the bullish movement is a bit of a grind so may not be impulsive. We also see a resistance level at $59,366 which is holding so far despite the bulls’ attempt to push the price higher.
If the price gets established above this resistance level plus the big round number at $60,000 it will likely continue higher to the next resistance level at $60.632. However there are so many resistance levels above that which are quite closely packed, the price will likely struggle to make much of a more substantial move higher.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, Fed Chair Jerome Powell will be testifying before the House of Representatives on the Fed’s monetary policy.
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