BTC/USD Crypto Signal
|Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached $3,338.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today only.
Long Trades
-
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,380 or $3.018.
-
Place the stop loss 1 pip below the local swing low.
-
Adjust the stop loss to break even once the trade is $200 in profit by price.
-
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.
Short Trades
-
Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,592 or $3,925.
-
Place the stop loss 1 pip above the local swing high.
-
Adjust the stop loss to break even once the trade is $200 in profit by price.
-
Take off 50% of the position as profit when the trade is $200 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.
I wrote last Thursday that it looked like the area around $3,925 had a confluence of resistance and so was likely to be today’s pivotal level. I remained broadly bearish. My broad bias was correct, but the price never reached $3,925. The price has continued to fall, and the long-term bearish trend line has held and kept the price down. Over the weekend the price made a new 1-year low as it reached very close to $3,200.
The picture still looks bearish as long as the descending trend line holds, and this is now confluent with horizontal resistance at $3,593 which looks like a very attractive level at which to find a short trade entry. There is some support below, but it looks rather weak and unreliable. I would take a bearish bias later if the price tests and reverses at $3,593.
There is nothing important due today concerning the USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.