BTC/USD: New higher support gives mixed picture
Yesterday’s signals produced a short trade from the inside candle break down from the resistance level at $6,923 but this only broke even.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,685 or $6,576.
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 $7,088 or $7,200.
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 the new lower “stairstep” resistance levels being printed at $6,923 and $7,088 was a bearish sign and I was looking to take short trades. There was a short setup, but it only broke even before the price rose again and flipped the former resistance level at $6,923 to become new potential support.
Although this action suggests bullishness, the price chart below still looks bearish because it has become obvious that the price is still within a symmetrical, downwards-sloping price channel. Also, the new support at $6,923 does not look very reliable.
There is nice confluence between the upper descending trend line of the bearish price channel and an obvious horizontal level at $7,088 so I will take a bearish bias if we get a bearish reversal there later today. Even if the reversal happens higher than that at $7,200, I will take it.
There is nothing of high importance due today concerning the USD.