BTC/USD Crypto Signal

Yesterday’s signals were not triggered, as there was no bullish price action at $6,620.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken before 5pm Tokyo time today, over the next 24-hour period only.

Long Trades

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,440 or $5,909.

• 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 Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,620 or $5,909.

• 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 I would take a bearish bias were the price to get established below $6,620. This is how things turned out, with the price breaking below the level cleanly and even using it as new resistance flipped from support. The price almost reached the lower level at $6,439 which has held as support so far.

I think this break below $6,620 was very important and is a bearish sign, because that was the last flipped level. All we have below now are inflective lows which were made earlier this calendar year. The price is down my more than 65% since its high in December 2017 and is close to reaching prices not seen for nearly 2 years. There is a bearish trend on every time frame and I have a bearish bias today. I will be even more bearish if the price can get established below $6,439.

Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and then the FOMC releases at 7pm followed by the usual press conference half an hour later.