Yesterday’s signals were not triggered, as the resistance level at $9,420 was never reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be entered by 5pm Tokyo time, during the next 24-hour period only.
Short Trades
Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,357, $8,800 or $9,420.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,811.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 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.
BTC/USD Analysis
I had a bearish bias yesterday, and the price has fallen quite strongly so it was clearly the correct approach to take. The downwards movement has reached a new X week low price, and it printed two new lower resistance levels along its move. Although the price has recovered over the past few hours, the picture is still clearly bearish. I do not have a lot of faith in the resistance level at $8,357 holding but the levels above that do look attractive for short trade entries. Below, there is still a considerable way to go before any supportive obstacle could be reached, so there is still plenty of room for the price to fall. There is an old trend line at about $7,150 but I have more faith in the horizontal level at $6,811.
Although the price of Bitcoin has been falling in any case, yesterday’s announcement by Google that they will not accept advertising for anything cryptocurrency related (including exchanges and wallets) has probably contributed to the sour price action which all the major cryptocurrencies are going through at present.
There is nothing due today regarding the USD.