Bitcoin: Bearish break to new 5-month low prices
Yesterday’s signals were not triggered, as there was no bullish price action when the support level identified at $7,754 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Friday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,202, $6,811, or $6,879.
Place 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 Trade Ideas
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,754 or $8,102.
Place 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 Bitcoin was getting interesting because we would probably soon see something dramatic happen at either $7,754 or above $8,200. This was a great call as we have had a strongly bearish breakdown below the former support at $7,754 and the price has made a new 5-month low.
The technical picture is now much more bearish, and the edge will probably be on the short side now. I would therefore be happy to take a bearish bias later today if we get a pull-back to the resistance level at $7,753 followed by a firm bearish price action reversal.
There is nothing of high importance due today concerning the USD.