Last Thursday’s signals were not triggered, as there was no bullish price action at $6,563.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm Tokyo time, during the next 24-hour period.

Long Trades

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $5,777 or $5,574.
• Place the stop loss 1 pip below the local swing low.
• Move the stop loss to break even once the trade is $200 in profit by price.
• Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trade

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,247, $6,309, or $6,563.
• Place the stop loss 1 pip above the local swing high.
• Move the stop loss to break even once the trade is $200 in profit by price.
• Remove 50% of the position as profit when the trade is $200 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

Last Thursday I thought a move down was most likely. We got this, and the price quickly broke strongly below the support and just kept falling to levels not seen since November last year, which is a significantly bearish sign. It is a shame how too many people have left their enthusiasm for the concept of Bitcoin blind them to what the charts have been saying pretty consistently over recent weeks: “going down”. There has been some strong buying in recent hours, but the price needs to settle for a few days and start to break a couple of resistance levels before we should even think about being bullish. In the meantime, I take a bearish bias and respect the long-term trends. It is best not to try to pick bottoms, but of course the closer the price gets to the $5,000 level, the more chance it has of making a major bullish turnaround.

(Click on image to enlarge)

There is nothing important due today concerning the USD.