BTC/USD Forex Signal - 22 May 2019

Bitcoin consolidating just below $8,000

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,436, $8,593 or $8,893.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 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 yesterday that I would be bullish above $8,436 and I thought that the longer that resistance held, the deeper a consolidation pattern we are likely to see.

The resistance has continued to hold, but the picture looks just a little more bullish as it does not seem the price is being sold heavily above $8,000. It looks like more of a neutral consolidation and as there is a long-term bullish trend, the odds should still be with the bulls although not by much.

I think the best opportunity would be another bounce at the nearest support, although a bearish rejection of $8,436 could also be interesting for a short trade.

I would take a bullish bias at a bounce at $7,583 or if the price can break above $8,436.BTCUSDConcerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.