BTC/USD Crypto Signal
|Yesterday’s signals were not triggered as none of the key levels were ever reached, although the low of the day was close to the support level identified at $9,150.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time, over the next 24-hour period.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,150, $9,003 or $8,893.
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Put the stop loss 1 pip below the local swing low.
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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.
Short Trades
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Short entry after a bullish price action reversal on the H1 time frame following the next touch of $9,438 or $9,620.
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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 the short-term action suggested a flattening out or even a bullish turn. The support levels below looked attractive, especially $9,000 which is not only a round number but currently very confluent with the trend line. I was correct as the price has risen a little and is looking more bullish, even though we can draw a new lower resistance level at $9,438. It looks as if this level will be challenged soon. Looking at the shorter-term picture, it appears that bulls and bears are quite evenly balanced, but perhaps with bulls having the edge. However, looking at the longer-term picture, we can now draw a long-term supportive trend line which includes yesterday’s swing low. This factor gives me a bullish bias today.
Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.
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