Yesterday’s signals produced a losing long trade from the bullish rejection of the support level at $6,636.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am London time and 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 $6,170 or $5,950.
• Put 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 Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,636 or $6,805.
• Put 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

I wrote yesterday that I would have a bullish bias above $6,636. The price initially seemed to respect this support level but broke down during the London session and then fell with some strength. My bullish bias was incorrect, but I was right in seeing $6,636 as a pivotal level for the day.

The price has now returned to trade comfortably well within its prevalent range of the previous week or so. I see Bitcoin as back to a dull, ranging situation, with no real long-term trend or trend on any time frame. It is amazing how in the space of little more than 6 months Bitcoin has moved from wild price movements to behaving like a typically dull Forex currency pair in August.

I have no directional bias today and see better opportunities in the major Forex currency pairs.

Don’t believe the hype.

(Click on image to enlarge)

There is nothing important due today regarding the USD.