BTC/USD Crypto Signal
|Yesterday’s signals could have produced a losing long trade following the bullish price action rejecting the support level identified at $3,886.
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 $3,700 or $3,338.
-
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
-
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,925, $4,055, or $4,374.
-
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 yesterday that there was new support at $3,886 but the picture was still long and medium-term bearish. The descending trend line shown in the price chart below was quite confluent with the horizontal resistance at $4,055 so I thought this might produce a key bearish turn if reached. I was correct to see the bears as in control as the price has continued to descend, with a former support level breaking down. The price is now in a bearish wedge and continues to make new lows. I think it makes sense to remain broadly bearish as long as the price remains below $4,000. A sustained break below $3,700 would be a very bearish sign.
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.