BTC/USD Forex Signal - 8 July 2019

|

Bitcoin: Consolidating triangle above $10,805

Last Thursday’s signals produced a profitable long trade from the bullish pin candlestick which rejected the support level identified at $11,561 but it only made a small profit.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades can be taken until 5pm Tokyo time Tuesday.

Long Trade Idea

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,805.

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

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

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

Short Trade Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $11,649, $11,808, or $12,364.

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

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

  • Remove 50% of the position as profit when the trade is $50 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

BTC/USD Analysis

I wrote last Thursday that the picture was looking quite bullish with a strong long-term bullish trend and a medium-term bullish move dominating too, although over the short-term the price was retracing. This suggested that looking for a long trade at a bullish bounce at the support of $11,561 would be the smart move, and I would take a bullish bias here in that scenario. This was reasonably accurate as the price did bounce and rise a little higher from there before getting established below that level, which did result in a more bearish picture.

The price now is within a consolidating triangle and I see a bullish break above $11,808 as likely to be technically significant, enough to create a more bullish situation, while a break below $10,805 would be a very bullish sign. That latter level looks very interesting and pivotal, a long trade at a bullish bounce there could be a great trade entry opportunity and if it set up, I would take a bullish bias.BTCUSDThere is nothing of high importance due today regarding the USD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
Learn more from Adam in his free lessons at FX Academy.