Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, over the next 24-hour period.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,271.
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 Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of the descending trend line shown in the price chart below, which is currently sitting at about $7,000; or of $6,739.
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 wrote yesterday that the position was unclear as the price was hovering around the only key level anywhere near the current price, and probably invalidating it. This was a good analysis as the price has just gone sideways since then. We are left with a large space above before the next resistance level, so the price has a lot of room to rise easily along a line of least resistance which is clearly upwards. Below, we see support beginning to form around $7,000 and at the psychologically key level of $7,250. As that higher level has just been hit, I would not look to use it again. Despite the long-term bearish trend, I take a bullish bias today.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 3:30pm.