Yesterday’s signals were not triggered as there was no bearish price action when the resistance level at $5,235 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time Thursday.
Long Trade
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $5,230.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 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 $5,355 or $5,513.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 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 yesterday that we had just had a day where the price hardly moved, just consolidated quietly in the same price area slightly below that resistance level at $52,35, so I was a little more bearish. I was at least right to be cautious, and we now see a more bullish picture with the price flipping that area to new higher support.
There is no long-term trend, although there is a medium-term weak bullish trend, and for that reason plus yesterday’s bullish flip, I am prepared to take a bullish bias if the price retraces to $5,230 and makes a strong bullish bounce there.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the press conference half an hour later.