Last Thursday’s signals were not triggered as the bearish price action took place a little way above the resistance level identified at $8,357.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken by 5pm Tokyo time, over the next 24-hour period only.
Short Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,357, $8,800 or $9,420.
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.
Long Trade
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,016.
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
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 last Thursday, and the action since then has been broadly lower, although the price is back where it was a few days ago: trying, and so far failing, to rise above the resistance level shown in the price chart below at $8,357.
The technical picture is interesting: there is clearly a medium / long-term bearish trend, but the price has in recent hours broken above the long-term bearish trend line which dominates the chart. However, the inability to break above $8,357 is clearly a bearish sign, even though a new support level has been established just above $8,015. The key thing to watch for now is to see which of the two key levels close by break first. Below $8,000 the bears should be encouraged; above $8,357 it starts to look much better for bulls.
I have a slightly bearish bias today.
There is nothing due today regarding the USD.