BTC/USD Forex Signal: Bearish Price Channel

The technical picture now is more clearly bearish, as we can see a fairly wide symmetrical bearish channel has been running for approximately 9 days.

BTC/USD: Price is ranging over the long term

Yesterday’s signals were not triggered as there was no bearish price action when the former resistance level at $8,818 was reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 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 $8,828, $8,162, or $8,004.

  • Place the stop loss $50 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 $9,086, $9,173 or $9,600.

  • Place the stop loss $50 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.

BTC/USD Analysis

I wrote yesterday that I would be very careful trading this pair, the action looked tricky and unpredictable with signs that we were going to get a bullish movement over the coming hours.

If the price could get established later above $9,173, I thought that would be a bullish sign.

This was a good call as I was correct to anticipate the danger of a bullish movement.

The technical picture now is more clearly bearish, as we can see a fairly wide symmetrical bearish channel has been running for approximately 9 days.

We are near the top of this channel, so I would be very interested in a short trade from a bearish reversal which clearly rejects both the trend line shown in the price chart below, and the horizontal resistance it is currently confluent with at $9,086.

The outlook is generally bearish for Bitcoin, although over the long-term the price is in a range.BTCUSDThere is nothing of high importance due today concerning the USD.

Adam Lemon

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.