Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $5,777.
• 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 Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,309.
• 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

I wrote yesterday that I was uncertain as to the likely direction over the short-term. The price has continued to fall slowly from the resistant area, and there are early indications that the level of $6,100 may have become new, lower resistance, which would be a bearish sign. However, we are also seeing the start of a possibly bullish medium-term “over and under” formation, so the price still looks conflicted here and I can’t make a short-term call.

(Click on image to enlarge)

Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time, followed by Crude Oil Inventories data at 3:30pm.