My previous BTC/USD signal last Monday produced a nicely profitable long trade entry from the bullish bounce when the support level at $68,243 was first reached.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades must be taken before 5pm Tokyo time Tuesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $68,598, $68,243, or $67,088.
- 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 ride.
Short Trade Ideas
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $69,827, $70,093, or $71,659.
- 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 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.
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BTC/USD Analysis
I wrote in my previous BTC/USD analysis one week ago that the price was stuck within a wedge pattern, so I thought things would get more bullish above $70,625 or more bearish below $66,700. This was an OK call as the price held within that range over the day, making a bullish breakout the next day which could have been profitably exploited using this same signal.
The technical picture has become more bearish now, as the price action has invalidated the wedge, producing more of a simple rectangular consolidation pattern between $67,000 and approximately $72,000 which is basically the zone I was talking about last week.
I again see the price as likely to hold within this zone, and I will take a bullish bias if we later get a bullish breakout above $71,549 or a bearish bias if we get a bearish breakdown below $67,000.
Another alternative today would be to take a new long trade if we get a bullish bounce at $67,000.
Despite the arguably bullish long-term trend, I feel that short trades will probably have more potential.
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
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