Yesterday’s signals were not triggered, as the bullish price action at the support level identified at $20,016 which happened a few hours ago was not strong enough to trigger a long trade entry.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered before 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 $26,012, $25,000, or $24,016.
Place the stop loss $100 below the local swing low.
Move the stop loss to break even once the trade is $100 in profit by price.
Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.
Short Trade Idea
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $30,000.
Place the stop loss $100 above the local swing high.
Move the stop loss to break even once the trade is $100 in profit by price.
Take off 50% of the position as profit when the trade is $100 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 technically, Bitcoin remains bullish as long as the price stays above the support at $26,012. I saw Bitcoin as still a good buy if it makes a bullish bounce after pulling back to this level.
I was correct to identify this level as pivotal – Bitcoin tends to respect technical levels even more so than Forex currency pairs do. We have seen another pullback over the past days with short-term bearish price action, but also a weak bounce a few hours ago at $26,012 which has not been quite enough to give a convincing buy signal.
We see an early sign with this weak bounce that the price may be more likely to break below $26,012 and make a deeper bearish retracement. However, it is worth waiting for the level to be decisively broken before giving up on a new long trade entry, as the odds look to still be weakly with the bulls as of this writing.
I am ready to take a long trade if we get a firmer bullish bounce after another touch of $26,012 due to the strong, long-term bullish trend and absence of any obvious key resistance levels above before $30,000 is reached. However, two consecutive hourly closes below $26,012 would make a continuing retracement to the next support level at $25,000 much more likely, and I would also be prepared to buy at a bounce from that level as it is such a big round number and likely to be significant.
There is nothing of high importance scheduled today concerning the USD.