BTC/USD: Support at $6,576 probably strong
Yesterday’s signals were not triggered as none of the key levels identified yesterday were reached yet.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,576, $6,386, or $6,293.
- 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
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,973 or $7,182.
- 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 I thought until the price hit $6,576 the odds would be with the bears, as we already saw the $6,754 level becoming bearishly pivotal– but we now see the key resistance level higher, at $6,973.
This was basically a good call as although the price is higher now than it was 24 hours ago, the basic medium-term bearish price action has not changed and the price has resumed falling again over the short-term without the nearest resistance level even getting hit yet.
The price chart below is dominated by a bearish wedge which seems to be pushing down the price. However, I think the nearest support level at $6,576 looks strong.
I take a weakly bearish bias between $6,973 and $6,576. I would be prepared to enter a short trade from a bearish bounce off $6,973 later on if it happens.
There is nothing of high importance due today concerning the USD.