Bitcoin: More Bearish
Yesterday’s signals were not triggered, as none of the key levels were reached yet.
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 $8,458 or $8,102.
⦁ 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 $8,893, $9,094, or $9,233.
⦁ 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 the outlook remained bearish: we were well within a symmetrical bearish price channel, with key resistance levels broadly holding. The price action was moving down in convincing swings to make new lows on both the short and medium terms.
This was a good call as the price has continued to move down in an orderly and predictable technical fashion. The USD is strong, and markets have risk-off sentiment at present. Both of these factors should tend to continue to push down on the price.
I maintain a bearish bias on Bitcoin below $8,893.
Concerning the USD, there will be a release of PPI data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm.