BTC/USD Forex Signal - Tuesday, August 22

Yesterday’s signals were not triggered as there was no bullish price action at any of the anticipated support levels which were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken only before 5pm New York time today.

Long Trade 1

Go long after a bullish price action reversal on the H1 time frame following the next touch of $3000.00.

Put the stop loss 1 pip below the local swing low.

Move the stop loss to break even once the trade is $50 in profit by price.

Remove 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

Go short after a bearish price action reversal on the H1 time frame following the next touch of $3934.40 or $4187.57.

Put the stop loss 1 pip above the local swing high.

Move the stop loss to break even once the trade is $50 in profit by price.

Remove 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

Bitcoin has reached an important moment. This does not quite look like a bursting of a bubble yet, but it is getting closer. The price fell by more than 10% in a few hours beginning close to the end of yesterday’s New York session. Although there has been some recovery from the low with a possible double bottom holding at $3600.00, the fact that support levels below $4000.00 have decisively broken down should be of grave concern to buyers still holding long-term long positions. The closest resistance level, which is new, is at $3800.00, and so far as the London session gets underway, it is holding as resistance – another bad sign for bulls. I think it will not hold, and the real test will be the resistance level at $3934.40, which could give a good short opportunity later if the price bounces there. Today is probably not going to be a good day for buying.