My previous BTC/USD signal on 10th July produced a profitable short trade from the bearish rejection of the resistance level at $59,366.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades must 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 $62,349, $61,748, or $60,632.
- 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 run.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $63,153, $63,613, or $64,674.
- 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 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 analysis on 10th July that Bitcoin was looking much more bullish. I suggested using the level at $60,000 as an indicator of whether it was worth a long swing trade.
This was an OK call insofar the price remained well below $60,000.
The technical picture is now notably more bullish, with the price having risen strongly since the assassination attempt on President Trump. Analysts think the attempt will boost Trump’s poll standing, which has already opened up a lead over President Biden in recent weeks.
The price action since Saturday looks extremely bullish, the kind of bullish move that easily cuts through historic points of likely resistance. Having said that, the last time the price touched $63,153 and the area just above it, a major bearish inflection printed, so bulls might find this resistance hard to crack.
I would consider a short trade from a test and failure to rise above $63,153. However, if the price continues advancing and gets established above $63,613.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be a release of Empire State Manufacturing Index data at 1:30pm London time. Fed Chair Jerome Powell will be giving a minor speech at 5pm.
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