BTC/USD Forex Signal - 12 August 2019

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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 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