BTC/USD Crypto Signal

Yesterday’s signals were not triggered, as there was no bearish price action at $7,167 or $7,418.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time today, during 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 $7,398 or $7,287.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 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 Trade

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,825.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is $200 in profit by price.
Remove 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.

BTC/USD Analysis

I wrote yesterday that there was no reason to be anything other than bearish below $7,418 even if price broke above the trend line again. This was a good call as that level has indeed seemed to be crucial line in the sand that separates a relatively bullish picture from a relatively bearish one, although I have adjusted that level slightly to become new support at $7,398. There is a long-term bearish trend, but this bullish break above that level looks significant. If the level holds, the picture will become increasingly bullish, but if the price breaks down below it quickly, that will be a bearish sign. I have no directional bias today, as the picture is only slightly bullish.