Yesterday’s signals were not triggered, as there was no bullish price action at $8,042.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm Tokyo time, over 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 $7,813 or $7,632.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Short Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,287 or $8,436.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
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 price was consolidating between $8,287 and $8,042. How the price reacted at either or both these levels should determine what would happen. I would take a bearish bias if the price could get established below $8,000. The price did break down below the support and the round number at $8,000 and although it rebounded quickly, the price is falling now and was drifting down even after its initial bullish snap-back, so my forecast yesterday was a reasonably good call. The support above $8,000 has been invalidated and the picture is now looking more bearish. I take a bearish bias today as long as the price remains between $8,200 and $7,813.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.