Last Thursday’s signals produced a losing long trade from the bullish inside candlestick which broke up after rejecting the support level identified at $5,376.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time today, during the next 24-hour period only.
Long Trades
Short Trades
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 last Thursday that we were seeing here a strong and dramatic push down, with the price reaching a new 1-year low. Although there were signs the move is over, at such lows it would be foolish not to anticipate a more bearish picture. I therefore took a bearish bias that day if the price traded below yesterday’s low price for more than one hour. This was a good approach as the price did dip below the low but quickly rebounded. However, the situation looks more bearish still now, with the price reaching yet lower 1-year lows. I would take a bearish bias today below $4,982 but I think it could be that there is a long-term buying opportunity here for investors as we are close to the psychologically crucial $5,000 mark. This kind of thing should only be done if you are comfortable with long odds, as the odds are in favor of downwards movement now.
