My previous BTC/USD signal on 9th October produced an excellent and very profitable long trade from the initial bullish rejection of the support level at $59,401.
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades may only be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $67,467, $67,274, or $65,306.
- 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
- Go short after a bearish price action reversal on the H1 timeframe following the next touch of $68,383, $68,699, or $69,827.
- 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 three weeks ago that Bitcoin was going nowhere and was likely to consolidate between the support at $61,229 and the resistance at $63,418.
This was not a very good call as the price moved quite a lot that day, plummeting down to the support level at $59,401 and then rebounding sharply, giving a good long trade entry opportunity.
The technical picture has changed notably since then, with the price rising over the past few weeks before seeming to top out near the big round number at $70k. However, despite the technical signs of the price topping in this area, the shorter-term price action was showing a very even balance between bulls and bears, as can be seen in the hourly price chart below which is dominated by a consolidating triangle chart pattern.
It is unclear what will happen next here, although the price action is beginning to look more convincingly bullish. As I write, the price is threatening to make a bullish breakout beyond the triangle. The best approach will probably be to wait for the price to get established above $69,000 before looking for any new long trades, or below $67,000 before looking for a short trade.
There is nothing of high importance due today regarding either Bitcoin or the US Dollar.
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