My previous BTC/USD signal on 30th May was not triggered, as there was no bearish price action when the resistance level which I had identified at $27,862 was first reached.
Top Forex Brokers
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $26,687, $26,264, or $26,003.
- Put 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 ride.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $27,476 or $27,862.
- Put 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 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 in my previous BTC/USD analysis on 30th May that the price had continued to act bearishly since reversing at the former resistance level of $28,331 near the top of the descending price channel. Therefore, I was bearish and wanted to look for short trades, although no such trade set up.
The technical picture is very much unchanged since then. The price remains within a wide descending price channel, although it is lower, so is not close to either trend line. There also has not been much volatility or directional price movement over recent days.
Despite the broadly bearish technical picture, the price is not far from the support level at $26,687 which has held well the last two times it was tested. I think the price is quite likely to hit this level again today, so this could produce a good short-term long trade entry if we get a firm bullish bounce there later.
Alternatively, if the price breaks below this level and makes two consecutive lower hourly closes, it will be likely to fall further, to at least $26,264, so that could be a good short trade entry signal.
Concerning the US Dollar, there will be a release of ISM Services PMI data at 3pm London time.
Ready to trade our daily Bitcoin signals? Here’s our list of the best Bitcoin brokers worth checking out.