Last Wednesday’s Bitcoin signals were not triggered, as there were no appropriate price action reversal signals when key support and resistance levels were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $34,611, $31,953, $28,607, or $27,487.
- 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 Ideas
- Go short after a bullish price action reversal on the H1 time frame following the next touch of $39,048 or $42,263.
- 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 last Wednesday that it was impossible to say how much further the fall in value would go, but the technical picture was bearish in every way and as there is strong bearish momentum, it made sense to look for short- to medium-term short trades in Bitcoin.
This was a good call as the price fell sharply over the day, and the price is lower now than it was when I wrote this.
Despite these strong falls and generally bearish picture, there are signs that we might have seen at least a medium-term double bottom just above the big round number at $35k. However, it is still too early to make a firm call on this.
Traders should watch Bitcoin closely now to see whether these lows hold as a double bottom. If the price continues to recover for another day or two, we probably will not see a break below $30k for some time. However, if we do get two consecutive hourly closes below $30k, that will be a bearish sign and I will take a short trade if it sets up.
Anyone looking to trade long here should still be very careful.
Regarding the USD, there are no data releases of high importance scheduled for today.