BTC/USD Forex Signal: Weakly Bullish Consolidation

Adam Lemon

There is still no change at all to the technical picture with the exception of the new narrowing triangle shown in the price chart below which connects recent high and low points.

BTC/USD: Strong support from $9,000 to $9,431

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

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken 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 $9,431, $9,316 or $9,063.
  • 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 $10,696.
  • 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 the support levels had been holding since last Thursday, so it could be said the bulls were winning a small victory so far by successfully defending this area. I saw the technical picture as really unchanged – bullish as long as $9,316 or even $9,000 holds as support, bearish below $9,000.

This was a good call as the price has continued to move sideways above the supportive area, and there is still no change at all to the technical picture with the exception of the new narrowing triangle shown in the price chart below which connects recent high and low points.

I continue to see the best potential set up as a long trade from a bullish bounce at any of the support levels below the current price.

A sustained break below $9,000 will cause me to take a bearish bias.

BTC/USD

 

There 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.
Learn more from Adam in his free lessons at FX Academy

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