Yesterday’s signals produced a short trade from the bearish inside candlestick which rejected the resistance level identified at $7,632 which gave a maximum reward to risk ratio of more than 2 to 1 before being stopped out.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pmTokyo time, over the next 24-hour period only.

Long Trade

— Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,266.

— 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 Trade

— Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,813.

— 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 was very cautiously bearish below $7,632. The price did fall for several hours once it broke below that level, giving a chance for a profitable short trade, but unfortunately the price turned around sharply and now seems to be using this level as support. So, we are short-term bullish, medium-term bearish, and long-term nowhere with Bitcoin, which does not fill me with much confidence in trying to trade this today. The best I can say is that the level at $7,813 which is now resistance looks very strong and pivotal, so a short trade from a bearish reversal seems to be the most likely good opportunity to watch for today. If the price can get established above that level, it would be a bullish sign and I would take a bullish bias.

There is nothing important due today concerning the USD.

This article provided by NewsEdge.