BTC/USD Forex Signal - 8 July 2019

Adam Lemon

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.

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 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.
Learn more from Adam in his free lessons at FX Academy

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