My previous BTC/USD signal yesterday produced a profitable long trade entry from the bullish bounce at the key support level of $62,349.
Today’s BTC/USD Signals
- Risk 0.50% per trade.
- Trades must be entered before 5pm Tokyo time Friday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 timeframe following the next touch of $57,974, $56,753, or $55,463.
- 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 $59,401, $60,445, or $62,349.
- 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 analysis yesterday that Bitcoin was looking bullish above the nearest support level at $60,445, and so I was seeking to enter a new long trade if we saw a bullish bounce when that level is first touched.
This was not a useful call as the price just plunged easily through this level as price action turned more bearish.
The technical picture is a bit more bearish today than it was yesterday, and it threatens to turn more bearish still as the price is now sitting heavily on the support level at $57.974. This looks likely to be today’s pivotal point. So it could be used as a good trade entry signal:
- If the level holds and we get a supportive bullish candlestick rejecting the support, a cautious long trade could be opened.
- If we get two consecutive lower hourly closes below that level, and the second one is a bearish candlestick, a short trade could be opened, targeting the next support level at $56,753.
There is nothing of high importance due today regarding Bitcoin. Concerning the US Dollar, there will be releases of Retail Sales and Unemployment Claims data at 1:30pm London time.
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