Last Thursday’s signals produced a losing short trade from the bearish rejection of the resistance level identified at $3,379.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Tuesday.
Long Trade
-
Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,274.
-
Place the stop loss 1 pip below the local swing low.
-
Adjust the stop loss to break even once the trade is $50 in profit by price.
-
Take off 50% of the position as profit when the trade is $50 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 $3,470, $3,428, or $3,379.
-
Place the stop loss 1 pip above the local swing high.
-
Adjust the stop loss to break even once the trade is $50 in profit by price.
-
Take off 50% of the position as profit when the trade is $50 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 last Thursday that I was not particularly bearish, but the odds did seem to be with the bears, so a strong reversal at a rejection of $3,379 would be a bearish sign that lower prices were about to happen, if it set up. It did set up and was followed by a downwards move on low volatility. Unfortunately, the accurate call was interrupted by the kind of sudden, strong, out-of-the-blue reversal that Bitcoin has been prone to over recent months, with the price rising by more than $300 in only a few hours. The picture is more bullish now, and the three former resistance levels have now probably become support. The price is within a relatively wide area without any key levels, so short-term direction is very hard to predict now. I have no directional bias right now.
There is nothing of high importance due today regarding the USD.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.