BTC/USD Crypto Signal

Yesterday’s signals could have been used to take a long trade from the gentle, slow, bullish bounce at $8,051. However, the short trade from $8,436 was much better and more profitable. It would probably be a wide idea to exit any open trade now.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 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 $8,051, $7,825, or $7,632.

• 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 ride.

Short Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,436 or $8,593.

• 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 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 although I was still bullish, I noted that the price was now approaching much tighter clusters of resistance levels as it gets close to $8,000 and this may well slow down the advance. In any case, it looked like a good buy at the nearest support. My bullish bias was correct as the price has continued to rise, and the tighter cluster of resistance levels has had an impact in slowing the advance down, or at least in producing deeper bearish retracements. I maintain a bullish bias but expect the pace of the rise to continue to slow down.

Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.

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