Yesterday’s signals were not triggered as there was not any bullish price action at $8,451.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be taken before 5pm Tokyo time Wednesday.
Long Trades
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $7,830 or $7,463 or $7,202.
- 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 $8,153, $8,340, or $8,610.
- 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 despite the bullish recovery, the lower high at about $8,800 and the new lower resistance at $8,610 were bearish signs. I thought that bulls should remain encouraged but should be cautious due to this deep pull back. Overall, I thought that the odds would still tend to favour the bulls.
In fact, the bears have won out, pushing the price down quite far, although the support level at $7,830 seems to be holding. We have a major bearish lower high at $8,800 and this deep retracement makes the picture much less bullish overall, although the price is certainly in a long-term bullish trend still by any measure. As such, a long from this supportive area at $7,830 may be interesting. It is likely to be today’s pivotal level and if the price can get established below it, I think that would be a bearish sign and suggest we are not going to see $9,000 again soon.
Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.