BTC/USD Forex Signal: Wide Bearish Price Channel

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my previous btc/usd signal on 1st may was not triggered, as there was no bullish price action when the support level identified at $27,874 was first reached.Today's BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5 pm Tokyo time Tuesday.Long Trade Ideas

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $26,687, $26,264, or $26,003.
• Place t he stop loss $100 below the local swing low.
• Adjust the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

Short Trade Ideas

• Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $27,316, $28,070, $28,331, or $28,626.
• Place the stop loss $100 above the local swing high.
• Adjust the stop loss to break even once the trade is $100 in profit by price.
• Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

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 on 1st May that the technical picture had become more bearish following a double top chart pattern completed by the second rejection of the resistance level at $30,030 and the decisive breakdown below the new resistance level at $28,740. However, I also thought that there would be support as nearby as the $28k area.

This was an excellent call as it forecasted precisely what happened that day.

We see over the longer term, the price has been contained by a very wide, bearish price channel that led to the price as low as $25,800 last Friday, when the price made a strong bullish rejection , from where it has risen somewhat. At the time of writing, bulls are trying to push the price up past the key resistance level at $27,316 but failing.

The short-term trend is clearly bullish, but it is unclear how much longer that will continue. The longer-term trend is certainly bearish.

I think the resistance level at $27,316 looks very strong , as we can see it acted last week as strong support before it finally broke down.

If the current embryonic bearish rejection of $27,316 continues, and we see a strong lower close on the hourly chart as the London session gets underway with the level holding cleanly, that could be a good short trade entry opportunity.

The resistance at $27,316 is likely to be today's pivotal point – if the price can get established above it with two consecutive higher hourly closes following the London open, the price could rise as high as the area of resistance at $28k today.

Concerning the US Dollar, there will be a release of Empire State Manufacturing Index data at 1:30pm London time.

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