BTC/USD: Supported at $8,375
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,375, $8,216, or $7,947.
Put the stop loss $50 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 Trade Ideas
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8.995 or $9,275.
Put the stop loss $50 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 last Thursday that the technical picture has become much more bearish with the downwards move clearing out the support levels all the way down to the $8,500 area. The support could be firm down there as there was a cluster of support levels close below that price so the price might stabilize.
However, I continued to look for short trades only.
This was a pretty good call as the price has continued to move down slowly, but the cluster of support below $8,500 has mostly held up and caused the price to stabilize.
Although the action is still a little bearish, it seems as though the support at $8,375 looks likely to hold, and the line of least resistance looks upwards until at least $8,995.
I would be prepared to take a short trade from a bearish reversal at any resistance level which may be hit over the next 24 hours.
Concerning the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.