Yesterday’s signals were not triggered, as there was insufficiently bullish price action when $5,441 was hit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Friday.
Long Trades
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,355 or $5,184.
- Place the stop loss 1 pip below the local swing low.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 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 $5,482, $5,645, or $5,777.
- Place the stop loss 1 pip above the local swing high.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- Take off 50% of the position as profit when the trade is $50 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 I thought the price was likely to consolidate between the nearest support and resistance levels and may have already bottomed at the new support. I also thought that a break above $5,645 would be a very bullish sign if it happened that day. The latter statement was a good call, but the support did not hold – we have seen a breakdown and new lower resistance form at $5,482. This is a bearish sign as it has not happened for some time, so I think we are likely to see a pause in the medium-term bullish trend which we have seen in Bitcoin for some time now. This means it may be wise to stand aside from trading Bitcoin for a while. I would be cautiously bullish if the price can get back up above $6,482 today and I think this is going to be the day’s pivotal level.
Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.