BTC/USD Forex Signal: Consolidating Above $9,109

Adam Lemon

Over the longer-term, the price is just consolidating above $9,100 and bulls really need to see the price advance beyond the huge psychological round number at $10,000 before getting excited.

BTC/USD: Bulls and bears evenly matched within narrowing triangle

Last Thursday’s signals gave a losing long trade from $9,190 but then a profitable long trade from $9,109. It may be wise to exit any remainder of the second trade which might still be open unless you are really in it for the long-term.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 5 pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,190, $9,109 or $9,011.
  • 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 $9,352, $9,462, or $9,547.
  • 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 last Thursday that we were currently seeing an inability for bulls to break up above the nearest resistance level at $9,462. A deeper bearish retracement from here would therefore not be a surprise.

This was a good call, as the bulls were unable to advance, and the price fell all the way to the $9,100 area.

The technical picture has become less bullish, and we now see bulls and bears very evenly matched over the short-term due to the narrowing triangle shown in the price chart below.

Over the longer-term, the price is just consolidating above $9,100 and bulls really need to see the price advance beyond the huge psychological round number at $10,000 before getting excited.

I will take a cautiously bullish bias today if we get two consecutive hourly closes later above $9,352.

BTC/USD

There is nothing of high importance scheduled today regarding 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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