Last Tuesday’s signals were not triggered, as there was no bearish price action at $6,324.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time, over the next 24-hour period only.
Long Trade
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,171.
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 Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,443 or $6,569.
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 last Tuesday that there was new lower resistance at $6,324 but I thought what was truly interesting here was the support at $6,171 which had a chance of holding as a long or perhaps medium-term low. A strong bullish bounce off that level and the trend line in the price chart below could be a great buying opportunity if you have a bias in favour of Bitcoin.
It took a while to happen, but we did get a sharp fall and then a huge bounce from that confluence with the supportive trend line at $6,170. Unfortunately, it happened so quickly that it was hard to take advantage of it. Still, it leaves the picture looking more bullish, although so far, the price has been unable to break above the nearest resistance level at $6,443. I think this will be the pivotal level today, and I would take a bullish bias later if the price can get established above it.
There is nothing important due today regarding the USD.