BTC/USD Crypto Signal

Yesterday’s signals produced a long trade at $6,178 which is currently in profit but looking weak and ripe for an immediate exit.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time, 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 $6,178 or $5,950.

• 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 Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,445, $6,671 or $6,805.

• 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

I took no directional bias yesterday, but I noted the bearish momentum and was dubious that the support at $6,178 would hold. Although the level at $6,178 has held, the buying here looks weak, and it feels like taking any long trades is just not going to be a good move today. There is strong bearish momentum on all time frames. I will be very happy to take a bearish bias here today below that support at $6,178. If the price does get lower and starts to approach $5,000 that will probably become an important moment for Bitcoin. That won’t happen for a while, if at all, but a break below the $5,000 could scare investors and produce a devastating crash.

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