BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today.
Long Trade
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,018.
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 run.
Short Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of the bearish trend line currently sitting at about $3,434 or $3,507 or $3,593.
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 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.
I wrote yesterday that if the price could break below the lower trend line of the triangle, it could fall all the way down to the $3,000 area and make new long-term lows. I would be bearish at a reversal from the long-term trend line currently sitting at $3,500 or $3,592.
I was partly wrong – the supportive trend line was broken, but the price fell but little, and now seems to have recovered to a weakly bullish short-term state. The technical picture is relatively unchanged though, we can still draw a convincing consolidating triangle. If the price can break above $3,593 for a couple of hours then I would be very bullish, but I think it is more likely that the price will fail at either the long-term bearish trend line or one of the two horizontal levels above it. I would take a bearish bias today following and bearish price action at one of those levels signalling a bearish reversal.
Regarding the USD, there will be a release of CPI data at 1:30pm London time.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
