BTC/USD Forex Signal
|Yesterday’s signals were not triggered, as there was no bullish price action at $9,356.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.
Short Trades
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Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,420 or $10,131.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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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 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 yesterday that despite the new support level at $9,356, the bulls’ situation looks weak. I do not take a directional bias, but it feels like if there is a strong movement it will be bearish rather than bullish. My caution was justified as after initially advancing, the price has broken convincingly back below that new support level. There is now no support before $6,810 which is a very long way down, so far away that I cannot even realistically give it as a long trade signal today. There is new resistance at $9,420 which is another bearish sign. The signals all point to still lower prices, although we do have two higher lows above $8,400 which could give a little hope to the bears. Despite the consolidation pattern, I do not see any real opportunity here to draw and use any good trend lines. I have a bearish bias today, especially if the price breaks below the $8,400 area.
Regarding the USD, there will be a release of CPI data at 12:30pm London time.
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