BTC/USD Crypto Signal

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.

Long Trade

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,128.

• 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 $7,685.

• 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 wrote yesterday that it looked as if we were seeing a short-term topping out at $7,300 which looked likely to push the price down to the support level at $7,128. This looked likely to be good support, so a long trade entry there following a bullish bounce was the potential trade to watch for today. I would have a bullish bias above $7,300 or at a bounce at $7,128.

This was a reasonably good call although the price did not do much, although it did keep failing to get significantly higher than $7,300. As there is no meaningful change to the technical picture, my approach today is exactly the same as I outlined yesterday.

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.