Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,353 or $6,171.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,569 or $6,643.
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 short-term direction looked weakly bullish but over the medium-term, it is impossible to make a good call here. I think the most exciting levels are far away: the support at $6,171 and the resistance at $6,643.
I was correct about the short-term direction being bullish as the price moved slightly higher over the past day, but not by much. New lower resistance can be drawn at $6,530 but I do not have a lot of faith in it. I still see the most exciting, interesting places for strong, medium-term reversals as both $6,171 and $6,643. I have no directional bias today.
Regarding the USD, there will be releases of Core Durable Goods Orders and Final GDP data at 1:30pm London time.