BTC/USD Forex Signal: Bearish Again Below $69,541

My previous BTC/USD signal last Thursday produced a profitable long trade from the bullish doji candlestick which rejected the support level at $69,038.

Today’s BTC/USD Signals

Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade Ideas

Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $67,332, $66,616, or $66,359.
Put the stop loss $100 below the local swing low.
Adjust the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

Short Trade Ideas

Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $68,890, $69,541 or $70,870.
Put the stop loss $100 above the local swing high.
Move the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 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

In my last BTC/USD forecast last Thursday, I thought that the best trade which might set up would be a short trade $70,870 targeting the support level at $69,038. This did set up the next morning but ended up as a losing trade. However, the earlier long trade which set up first was a winning trade, although the profit was relatively small.

I see the technical picture as continuing to be bearish, as evidenced by:

The linear regression analysis within the price chart below showing a symmetric descending channel, which is largely holding.
Bitcoin’s failed bullish breakout out of its range earlier which failed to even make $75,000 before flopping and heading south again.
The long-term bearish trend.

For these reasons, I see a short trade as the best potential opportunity which might set up, especially from the resistance level at $69,541 as it is confluent both with the upper trend line of the descending price channel and the big round number at $70,000.

By the time the price reaches higher resistance levels, the short-term trend will be broken so the trade would probably be relatively unreliable.