Support Holds Firm at $29,223

My previous BTC/USD signal last Thursday produced a profitable short trade from the bearish rejection of the resistance level which I had identified at $29.681.

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

• Go long after a bullish price action reversal on the H1 timeframe following the next touch of $29,223, $28,810, or $28,626.
• Put the stop loss $100 below the local swing low.
• Move the stop loss to break even once the trade is $100 in profit by price.
• Take off 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

• Go short after a bearish price action reversal on the H1 timeframe following the next touch of $29,681, $29,867, or $30,092.
• 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.
• Take off 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.

I wrote in my previous BTC/USD analysis on Thursday last week that it was very difficult to see Bitcoin getting much higher for two reasons:

1. The strong resistance at $31k has again held firm, and the price fails again and again whenever it gets close to that area.
2. Markets were seeing a selloff over recent days in risky assets such as stocks and Bitcoin.

I was looking to enter a short trade from a bearish reversal at $29,681 and this set up and produced a profitable short trade.

The technical picture is still dominated by the gently bearish and wide price channel, but we have also seen a new support level emerge at $29,223 which has produced some strong buying and short-term bullish momentum, although it is starting to look as though bulls are running out of steam here. It would not be a surprise if the price turned bearish at its current peak as this area was infective when last reached some hours ago.

The support level at $29,223 could be pivotal today, and as there was such strong buying below it, I will only look for a long trade if we get a bullish bounce at this level. I see short trades as only likely to work out if taken from a reversal at a resistance level above the current price.

There is nothing of high importance scheduled today concerning the US Dollar.

Ready to trade our daily Bitcoin signals? Here’s our list of the best Bitcoin brokers worth checking out.