My previous BTC/USD signal on 15th July produced a slightly profitable short trade from the bearish rejection of the resistance level at $63,153.
Today’s BTC/USD Signals
- Risk 0.75% per trade.
- Trades may only 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 $68,383, $67,238, or $66,805.
- 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 $70,093, $71,659, or $72,761.
- 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 analysis on 15th July that a short trade from $63,153 could be good. However, if the price continued advancing and got established above $63,613 that would be a bearish sign.
This would be a good call as both were reasonably accurate.
The price has risen very strongly over recent days since taking off from the support level at $63,613 last Thursday. The rise has been powerful and quite easy. Bulls are now testing the zone of resistance ending at $70,093. If the price can get established above this level, it will be a bullish sign, as I think this is likely to be a pivotal price area today. Alternatively, a failure to exceed that level could signify a forthcoming bearish retracement, so how the price reacts in this zone over the coming hours is quite likely to be tradable, depending upon the outcome.
I am more interested in being long than short for the time being as we certainly see recent bullish momentum here.
Of course, the closer we get to the area of the all-time high near $74,000, the greater the chance of a major bearish reversal.
Crypto in general and Bitcoin in particular may be getting some tailwind from the prospect of a crypto-friendly Trump Presidency, with betting markets still giving President Trump a 62% chance of winning the Presidential election in November, despite some polls which give a narrow lead to Kamala Harris, who is now certain to be the Democratic nominee.
There is nothing of high importance due today regarding Bitcoin or the US Dollar.
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