BTC/USD Forex Signal

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Bitcoin: Strong bearish break from consolidating triangle

Yesterday’s signals produced an excellent short trade from the bearish price action at $10,235 which has been very profitable so far.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073, $8,893, or $8,610.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,767 or $10,235.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is $50 in profit by price.

  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.

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 the dominant consolidating triangle technical pattern was due for a breakdown.

I was watching for a strong breakdown below the $10,000 which was quite likely to produce a strong fall down to the $9,000 area. This was an excellent call, and very actionable and profitable. The price movement has unfolded exactly as I predicted.

The price is showing short-term bearish price action, so although this downwards movement is probably mostly played out already, it looks likely to continue down to hit the support level at $9,073 over the coming hours, so might be traded short on the shorter time frames.BTCUSDRegarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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.