BTC/USD Forex Signal

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Bitcoin: Bearish breakdown

Yesterday’s signals were not triggered, as there was no bullish price action when any of the support levels were reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,359 or $10,204 or $9,903.

  • 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 $10,742, $10,913, 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.

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BTC/USD Analysis

I wrote yesterday that I still saw the major opportunity here as another bullish bounce at $11,112 for an attractive long entry opportunity. However, I also suggested that the picture was starting to look a little bearish as we had a structure containing the price with two descending trend lines.

My search for a bullish bias turned out to be a bad call as the bearish wedge has instead broken down and the price has fallen with considerable bearish momentum, although there are signs that it might be starting to bottom out now.

The trends are mixed on different time frames so any solid rejection of a key level nearby could be a good trade entry, whether long or short. I think that the best trade which might set up later would be a short trade from a retrace to $10,742 followed by a bearish reversal.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.