My previous BTC/USD signal on 25th September may have given a losing short trade from the initial bearish rejection of the resistance level at $64,613, then a profitable long trade from the bullish breakout beyond it.
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades may only be taken prior to 5pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $62,349 or $61,338.
- 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 $64,165, $64,613, or $65,306.
- 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 forecast almost a week ago that Bitcoin was looking dull but that the resistance level at $64,613 looked likely to be the day’s pivotal point. This was an accurate call.
The long-term price action is a bit confusing it looks like the price is slowly descending from a peak, but on low volatility and with no decisive directional movement. The price is within a zone of comfort and looks like it is going to consolidate between the nearest support and resistance levels.
Bitcoin looks very boring to trade so traders will be looking at other assets today like the Japanese Yen and major stock market indices, or the Australian Dollar.
If you must trade Bitcoin today, a rejection of either the nearest support or resistance level would look like equally useful trades, but be conservative and ready to take profits relatively quickly.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be releases of ISM Manufacturing PMI data and JOLTS Job Openings data at 3pm London time.
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