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

• 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.

• Put 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 ride.

Short Trades

• Short entry after a bullish price action reversal on the H1 time frame following the next touch of $9,438 or $9,620.

• Put 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 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.