Yesterday’s signals produced a losing long trade from the bullish bounce following an hourly bullish inside candle rejecting the identified support level at $10,783.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades may be taken any time.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,976 or $7,837.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,370 or $10,790.
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
I wrote yesterday that Bitcoin was approaching a pivotal moment and the eventual breakout from this triangle was probably going to be significant. After some initial support at the expected level above $10,000 and the supportive trend line, as the price broke below the trend line, it went on to fall quite strongly, reaching a new low price below $9,600 and printing new obvious lower resistance along the way. This is a bearish sign, making the entire technical picture on Bitcoin significantly more bearish, although this is ameliorated by the fact that the price has recovered a little to trade above $10,000.
I heave a bearish bias, and if the price now becomes established below $10,000 it will probably continue down to at least the next support level below $9,000.
Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.