Yesterday’s signals were not triggered, as there was no bullish price action at $6,440.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time today, during the next 24-hour period only.

Long Trade

• Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,909.
• Put the stop loss 1 pip below the local swing low.
• Adjust the stop loss to break even once the trade is $200 in profit by price.
• Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.

Short Trade

• Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,620.
• Put the stop loss 1 pip above the local swing high.
• Adjust the stop loss to break even once the trade is $200 in profit by price.
• Take off 50% of the position as profit when the trade is $200 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 had a bearish bias yesterday generally, and even more strongly so below the price level of $6,439. This worked out well for a few hours as the price began to fall, but the price then went on to rise quite strongly and is currently challenging the new resistance level below $6,500. I look to the next, higher resistance level as crucial: I will maintain a bearish bias below $6,620.

I see this earlier break below $6,620 as an important bearish sign.

(Click on image to enlarge)

Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.