Yesterday’s signals were not triggered, as there was insufficiently bullish action when the price reached $6,447.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time, during the next 24-hour period.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,268 or $6,178.
Put 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 $6,444.
Put 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 and that the price was likely to move down to the $6,500 are which turned out to be a good call. It now seems as if the price has found some support, making a bullish impression as it bounces just above the nearest support level at $6,268. I think it is now very unlikely that the price will be able to get above the resistance level at $6,445 today, but the short-term action might well be a bullish struggle to get close to it or even to just about reach it. I am bearish over the medium-term but have no directional bias today as I think the major movement has already played out.
Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.