BTC/USD Crypto Signal

Last Thursday’s signals could have produced a long trade entry following the bullish pin candlestick which rejected the support level at $6,178, although I warned that the price was likely to break down further within the next 24 hours. It would have been / was a losing trade.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time, 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 $6,280 or $6,178.

• Put 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 $6,445.

• Put 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

The price has managed to rise and break above resistance, so the long-term situation is certainly looking more bullish than it was. However, I think that bulls should not get excited until the price is able to rise above the next resistance level of $6,445, which looks more important. The price would then have more room to rise, and the line of least resistance currently looks upwards, so I have a very weak bullish bias on Bitcoin today. I think a period of consolidation is quite likely today, however.

Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.