BTC/USD Forex Signal: Decline Continues

My previous BTC/USD signal on 24th June was not triggered as there was no bullish price action at either of the support levels when they were first reached.

(Click on image to enlarge)

BTC/USD Forex Signal Today 27/6: Decline Continues (graph)


Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $60,632 or $58,309.
  • Place 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 ride.

Short Trade Ideas

  • Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $61,180, $62,254, or $63,323.
  • Place the stop loss $100 above the local swing high.
  • 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 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 in my previous BTC/USD forecast three days ago that Bitcoin had been moving lower within a medium-term bearish trend in an orderly way within a symmetrical price channel.

I thought it made sense to look for new short trades.

This was an excellent call as the price fell heavily over the day, reaching as low as $58,500 before rebounding at the end of the day.

The price then ran into a new resistance level at $62,245 which has sent the price lower again. The medium-term bearish trend continues, and the bearish price channel remains intact.

These are bearish signs, given a tailwind by the renewed strength in the US Dollar. Therefore, I only wish to look for short trades here.

Given the bouncy price action, I think trading bearish reversals from failed tests of resistance levels is the best entry method with which to open new short trades.

The resistance level at $62,245 looks especially attractive.

Having said that, it may be that if the price just breaks down convincingly below the big round number at $60,000 which is somewhat confluent with the support level at $61,180, we will then see the price fall again to the $58,500 area at least.

Concerning the US Dollar, there will be releases of Final GDP and Unemployment Claims data at 1:30pm London time, followed by Pending Home Sales at 3pm. There is nothing due regarding Bitcoin.


More By This Author:

AUD/USD Forex Signal: Bullish Momentum After Inflation Surprise
GBP/USD Forex Signal: More Bullish As US Dollar Retreats
Weekly Forex Forecast - Sunday, June 23

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