BTC/USD: Tested 2-week low price
Last Thursday’s signals were not triggered, as none of the key support or resistance levels identified that day were reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Ideas
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,162, $8,004, or $7,200.
Put the stop loss $50 below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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 time frame following the next touch of $8,829, $9,125, or $9,584.
Put the stop loss $50 above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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.
BTC/USD Analysis
I wrote last Thursday that I would take a bullish bias once we got two consecutive hourly closes above the recent high price at $9,420. This was a good call as once the price made those higher closes it rose over the rest of the day by approximately another $300 in price.
The technical picture has changed strongly since last Thursday: the price has broken down heavily to reach low prices not seen for the last two weeks. The price action just below $8,829 is very bearish, with a bearish double top formation slowly forming just under that resistance level, suggesting we are about to see another push down. If this level holds, the price is likely to move down to test $8,162 again.
I will take a bearish bias if the price fails to rise above $8,829 or at a bearish reversal at $9,125. I would only take a long trade from a bullish bounce at $8,000 or at $7,200 today.
There is nothing of high importance due today concerning the USD.