BTC/USD Forex Signal: Consolidation Below $10k area

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BTC/USD: Bearish retracement

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

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,651, $9,522, $9,117, or $8,802.

  • Put 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

  • Short entry after a bullish price action reversal on the H1 time frame following the next touch of $10,012 or $10,440.

  • Put 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 next move has become much harder to predict, but a long trade from the new higher support level at $9,651 could be an interesting trade but would be unlikely to produce a move that went much higher than $10,000.

This was an OK call as the price didn’t really go anywhere, so it was enough to keep out of trouble. All we see now is a consolidation and fresh resistance close to $10,000. That makes the picture a little more bearish technically, but bulls should not give up hope as long as the price remains above $9,651.

I take no directional bias today and could see either long or short trades from reversals at any key levels as potentially good trades.

BTCUSDConcerning the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time.

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.
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