BTC/USD: Panic hitting Bitcoin
Yesterday’s signals produced a long trade entry from another bullish bounce at $7,698 which is currently in a little profit, but it would probable be smart to exit this trade right away as the small bullish recovery looks vulnerable.
Today’s BTC/USD Signals
Risk 0.50% 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 $7,698, $7,477, or $7,228, or $7,043.
Place the stop loss $50 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 $8,000, $8,216, or $8,375.
Place the stop loss $50 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 price may stabilize for a while, but it was hard to see risk sentiment improving significantly any time soon, so I took a bearish bias here as long as the price remained below $8,000.
This was a fairly good call even though the price has increased a little over the past 24 hours. However, it has remained below $8,000.
Although the price has continued to stabilize by getting support at $7,700 recoveries in other risky assets such as stocks has been stronger technically, so bulls look to be on shaky ground.
I will take a bearish bias if the price retraces to the $8,000 and prints a bearish rejection.
There is nothing of high importance due today concerning the USD.