Bitcoin: Bearish but pivotal point at $6,786
Yesterday’s signals were not triggered, as none of the key levels were reached yesterday.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,786 or $6,441.
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 $7,221, $7,269, $7,400 or $7,445.
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 as the price was again looking low and threatening to break down to new lows so I take the same approach here as we have a bearish trend on all time frames – I would take a bearish bias below $7,000 to at least as far as the next key support level at $6,786.
This was a great call as the price continued to fall below $7,000 and has almost reached the support level at $6,786.
The price action continues to look bearish, so I think we are likely to see $6,786 reached today which will probably be the pivotal point. I would take a bearish bias again here if we get a couple of hours consecutive closing prices below $6,786 as we would then seems to be breaking towards long-term low prices.
I am comfortable being bearish here as there is a bearish trend on all time frames.
There is nothing of high importance due today concerning the USD.