Yesterday’s signals were not triggered, as there was insufficiently bullish price action at $8,166.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered until 5pm Tokyo time today, during the next 24-hour period only.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,825 or $7,542.
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 bullish price action reversal on the H1 time frame following the next touch of $8,051 or $8,166.
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 I had a bearish bias as it looked quite likely that there was room and momentum for the price to fall further. The support level at $8,051 looked especially strong, but even that was not enough to prevent the further fall in price which I had forecasted. The price is now making new looks, is currently sitting right on a support level at $7,825 which looks likely to break. This suggests a deeper move down is likely to happen, to the $7,500 area. I have a bearish bias below $7,825.
Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.