Yesterday’s signals were not triggered, as there was no bearish price action at either $5,669 or $5, 777.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time Wednesday.
Long Trades
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,777, $5,667, or $5,513.
- Placethe 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 Trade
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $5,950 or $6,171.
- Placethe stop loss 1 pip above the local swing high.
- Adjustthe 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 although we have long-term bullish trend here, it is relatively weak, however and the distributive style at about $5,800 on high volatility was a bearish sign, so I was ready to avoid trading Bitcoin yesterday.
I was overly pessimistic, and this was a bad call – the price rose quite strongly after making a relatively minor bearish pull back.
The price is respecting technical levels which makes it attractive to trade, topping earlier at the resistance level of $5,950.
I would take a bullish bias today if the price makes a strongly bullish bounce at the nearest support level of $5,777.
There is nothing important due today concerning the USD.