My previous BTC/USD signal on 28th October produced a losing short trade from the bearish rejection of the resistance level at $68,383.
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades must be entered before 5pm Tokyo time Thursday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $72,095, $71,529, or $70,093.
- 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 Idea
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $73,620.
- 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.
BTC/USD Analysis
I wrote in my previous BTC/USD forecast Monday that Bitcoin was stuck within a consolidating triangle chart pattern but was starting to look more bullish, so I thought that waiting for the price to
established above $69,000 and then looking to go long would be a good strategy for the day.
This was a good call as after this breakout happened, the price continued to rise strongly, eventually getting close to the all-time high made by Bitcoin in USD terms in March 2024.
The price has now pulled back from this high and may have formed a fast bearish double top near the record high. However, it is worth noting that the price action now looks to be making a bullish base at the new higher support level at $72,095. This support level is looking very likely to be today’s pivotal point.
Longer-term trend traders might want to wait for Bitcoin to close in New York at a new record high price before entering a long trade, but traders with more faith in the existing bullish trend and the bullish short-term price action could enter a long trade following another bullish bounce at $72.095, or even right now at a price very close to that level.
Bitcoin’s prospects over the coming days may be influenced by the US Presidential and Congressional elections, as a Trump Presidency and Republican Congress are seen as potentially more sympathetic to Bitcoin. Betting markets currently suggest that a Trump win has a probability of 64%, so this may be helping to keep Bitcoin bullish. A republican clean sweep could push Bitcoin up far beyond the $73k area which currently holds the all-time high.
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
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