My previous BTC/USD signal on 5th July was not triggered as there were no price action reversals at any of the key support or resistance levels which were reached that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $29,904, $29,424, or $29,207.
- Place the stop loss $100 below the local swing low.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 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
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $30,605 or $31,604.
- Place the stop loss $100 above the local swing high.
- Adjust the stop loss to break even once the trade is $100 in profit by price.
- Remove 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.
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BTC/USD Analysis
I wrote in my previous BTC/USD analysis on 5th July that although the price had made a bearish retracement after earlier breaking above the $31k area, which looked pivotal, I thought that as the longer-term price action still looked very bullish I expected an eventual continuation of the upwards move.
However, we did not get any significant bounces at any key support levels, and the price action has continued to be somewhat bearish. The price is now bearishly consolidating below the $31k area and seems to be threatening to fall further.
We might see a major bearish reversal here that could be a good trading opportunity, as the $31k area looks likely to be so pivotal.
The support just below the big round number at $30k has acted successfully as firm support for about three weeks now, ever since the initial bullish move got the price established above this level.
Clearly this level stands out as one we need to pay strong attention to.
Therefore, I will be ready to enter a new long trade if we get a bullish bounce at $29,990, or a new short trade if we get two consecutive hourly closes below that level.
I think that if it sets up, the short trade is likely to be the better opportunity, as the price could make a strong run down, as the price earlier made a rise through this area very quickly, the speed of which could be reflected on the way down.
There is nothing of high importance scheduled today concerning the US Dollar.
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