Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades may be taken at any time.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,694 or $8,976.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.
Short Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $13,217 or $14,058.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 50% of the position as profit when the trade is $200 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
Last week was a very significant time for Bitcoin, and for cryptocurrencies in general, as Bitcoin completed its biggest fall in price since 2015. I was concerned that a sustained break below the psychologically important $10,000 level would trigger a still larger drop, to perhaps $7,500 or even $5,000. However, in the end, the $10,000 level has more or less held, and cryptocurrency price movement has stabilized, with declining volatility and price consolidation.
If my analysis is correct, it suggests that there are likely to be fewer trading opportunities here over the near term. However, there is a lot of room for the price to rise until it hits the nearest key resistance level, so a long trade from the support above $10,000 might be interesting.
It seems that Bitcoin has survived to fight another day, but I have no directional bias.
There is nothing important due today concerning the USD.