BTC/USD Forex Signal

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Bitcoin: Bearish wedge supported by $11,112

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered between 8am London time Monday 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $11,112 or $11,000 or $10,890.

  • 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 $12,804 or $13,176.

  • 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.

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BTC/USD Analysis

I wrote last Thursday that the price was now consolidating within a symmetrical triangle formation, centred a little below $12,000. I wanted stand aside for the time being and would not pay much attention to a breakout from the triangle. I saw the key thing to watch for as a bearish retracement to support at $11,112 and to watch carefully how the price reacted there: if it was a solid bullish bounce, I would take a bullish bias as the price has a lot of room to rise, all the way to $12,804.

This was a good call as the collapse of the triangle meant little. The bounce at $11,112 was much more significant. We now have a bearish wedge chart pattern formation but it seems to be well supported at $11,112 with room to rise quite a long way before the price would hit any key resistance levels.

I see the major opportunity here as another bullish bounce at $11,112 which would be an attractive long entry opportunity as there is such a strong cluster of support levels at and below that price – I would take a bullish bias on Bitcoin if we get this setup later.BTCUSDThere is nothing of high importance due today concerning 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.