Yesterday’s signals were not triggered, as there was no bearish price action at $6,569.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades can be taken until 5pm Tokyo time, over the next 24-hour period only.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,171.
  • 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 ride.

    • Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,324 or $6,413.
  • 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 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 wrote yesterday that I thought the higher support level at $6,416 was likely to break down and trigger a further fall. This happened quickly, so my bearish bias there paid off. I also noted that the support level below that at $6,171 looked likely to be very strong as it is confluent with the supportive trend line from the triangle formation, and this level has not even been reached yet so that view is also working out well.

    There is new lower resistance at $6,324 but I think what is really interesting here now is the support at $6,171 which has a chance of holding as a long or perhaps medium-term low. A strong bullish bounce off that level and the trend line market in the price chart below could be a great buying opportunity if you have a bias in favor of Bitcoin. If it breaks down, we could see a sharp fall instead towards the $5,000 area.

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