BTC/USD Forex Signal

Yesterday’s signals gave a potential losing long trade entry after the bullish doji candlestick rejected the support level at $8,092.

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.

Short Trade

• Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,271.

• Put 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 took a bearish bias yesterday and was proved to be correct, as the price has fallen further, invalidating the support level just above $8,000. There are now no key support levels anywhere close to the current price, although there is a key swing low at about $7,330 which could be supportive, as well as the psychological level of $7,500. The price action over recent hours has been a little volatile, with some bullish swings, but there is no reason to change away from a bearish bias provided the price remains below the key resistance level at $8,271.

There is a long-term bearish trend on all the major cryptocurrencies, which is something else which should encourage a bearish bias.

Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.