Yesterday’s signals were not triggered as there was no bearish price action at $4187.57.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trades
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $4041.07 or $3978.85.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 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
Yesterday, following a bullish recovery from what had earlier in the week looked like a serious breakdown in the price, the resistance level of $4187.57 was broken. The price has shaded off, but still looks mildly bullish. The true significance of the recent high is that it can be connected from the earlier all-time high by a bearish trend line, which produced a symmetrical bearish channel shown in the chart below. This is an early indication that the price may gradually be headed downwards over the short to medium term. However, we also have a new support level above $4000.00, which is a slightly bullish indication. If the price now breaks up above the bearish trend line, that will be a bullish sign, but it would not be surprising if the price then struggled to get above the $4400.00 to $4500.00 area.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.