Last Thursday’s signals were not triggered, as there was no bearish price action at $6,620.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time today, over the next 24-hour period.
Long Trade
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,340.
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 Trade
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,696.
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
Last Thursday, I wrote that I would maintain a bearish bias below $6,620. This didn’t work out very well as the level was soon invalidated, but the area did continue to be resistant and the price has spent nearly all the time since then below that amount.
We have now seen the price go sideways over the last five days after falling quite heavily. There is no doubt that there is a long-term bearish trend, but the price is not able to fall any further and it might have bottomed out. For that reason, I would be bearish below $6,340 and bullish above $6,696 today. I would be more comfortable being bearish than bullish.
There is nothing important due today concerning either Bitcoin or the USD.