BTC/USD Forex Signal - 28 August 2019

Bitcoin: Consolidating triangle continues to hold

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

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade Idea

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $9,073.

  • 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 Ideas

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,235, $10,562, $10,921, or $11,112.

  • 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 yesterday that the dominant consolidating triangle technical pattern, which can still be seen intact in the price chart below, had become more significant, but was also getting more likely to break down soon. This wasn’t a bad call. The lower trend line of the triangle has had to be adjusted slightly, but it still holds and still looks likely to break down soon. The bearish case is strengthened by the new lower resistance level which seems to have formed at $10,235.

I will be watching for a strong breakdown below the $10,000 which is quite likely to produce a strong fall down to the $9,000 area – there is plenty of room for the price to drop before it hits the next key support level at $9,073.BTCUSDRegarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.