BTC/USD Forex Signal: Bears Driving Price To Support Level A

Date

4/25/2023 4:12:47 AM

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my previous btc/usd signal on 19th april was not triggered, as there was no bullish price action when the support levels I had identified that day were first reached.Today's BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5pm Tokyo time Wednesday.Long Trade Ideas

Go long after a bullish price action reversal on the H1 timeframe following the next touch of $26,687, $26,264, or $26,003.
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.

Short Trade Ideas

Go short after a bearish price action reversal on the H1 timeframe following the next touch of $27,874, $28,358, $28,574, or $29,109.
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.BTC/USD Analysis

I wrote in my previous btc/usd analysis that the key resistance level at $30,534 was looking like a very pivotal point. I was expecting either a major bullish breakout beyond that level or a significant medium-term or possibly long-term bearish reversal, due to the topping formation which had been playing out in the price chart over the preceding days.

This was a good call as the price sank that day, rejecting that area of resistance, and has kept falling ever since. We got the major bearish reversal.

Typically, with reversals like these, the price returns to its base. Looking at the price chart below, we can see that this base looks to be marked by the support level at $26,687 , so it is likely to act as strong support if reached .

Another reason why this support level is likely to be strong is that it is part of a cluster of three tightly-packed support levels, so the price is very unlikely to cut through this area cleanly and quickly, at least not under the current market conditions.

The price is likely to consolidate once it reaches this support level, and of course to get there first it must keep selling off.

The nearest resistance level at $27,874 also looks likely to be strong.

I am ready to take a short or long trade depending upon which level is reached first, and whether a firm rejection is printed when the level is first reached. However, overall, I do not expect much price movement on the long side, so the best opportunity which might set up would probably be the short trade from $27,874.

Concerning the US Dollar, there will be a release of CB Consumer Confidence data at 3pm London time.

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