Forex BTC / USD signal: continued weak downtrend

The sale of the $ 40,000 zone slows down.

Last Monday’s Bitcoin signals were not triggered as there was no bullish price action when the price reached the support level at $ 38,653.

Today’s BTC / USD Signals

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Long business ideas

• Long entry after a bullish price reversal over the H1 period after the next touch of $ 37,633, $ 36,656 or $ 35,258.

• Place the stop loss at $ 100 below the local swing low.

• Move the stop loss to break even once the trade is $ 100 profit per price.

• Take out 50% of the position as profit when the trade is $ 100 profit per price and let the rest of the position run.

Short business ideas

• Short entry after a bearish reversal in the H1 period after the next touch of $ 38,728 or $ 40,625.

• Place the $ 100 stop loss above the local swing high.

• Move the stop loss to break even once the trade is $ 100 profit per price.

• Take out 50% of the position as profit when the trade is $ 100 profit per price and let the rest of the position run.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle, or even just a engulfing candle with a higher close. You can mine these levels or areas by observing the price action that occurs at the given levels.

BTC / USD Analysis

I wrote last Monday that Bitcoin’s short-term direction was unclear. I thought the support level at $ 38,653 looked likely to be very strong, so if the price could break below $ 38,653 that would be a bearish sign.

I was wrong about the strength of the support level identified at $ 38,653, but I was correct that once the price got below it will continue to move lower. However, the pace of the downward movement has slowed down.

We have a long term bearish trend and a continued mid term sell off since the recent brief jump above the large round number at $ 40,000. Most cryptocurrencies have fallen in recent days with reasonable momentum.

In these market conditions I think the best approach is to wait and see if today we get two consecutive hourly close below the support level which is currently being felt at $ 37,633 and enter a cautious short transaction if that settles.

However, it’s worth noting that the price only has about $ 1,000 extra before it hits the next support level, so it doesn’t appear to have much room to move down.

Regarding the USD, there will be a release of the ADP nonfarm employment forecast at 1:15 p.m. London time, followed by ISM Services PMI data at 3:00 p.m. London.