BTC/USD Forex Signal: Narrowing Triangle Still Continues

Adam Lemon

The price has continued to barely move, just going sideways on ever-decreasing volatility.

BTC/USD: Bulls and bears are evenly matched

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

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $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 $9,284, $9,352, or $9,462.
  • 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 best that could be said was that a sustained break below $9,000 would be a bearish sign, while a sustained break above $9,352 will be a bullish sign. I was still ready to take long trades from firm bounces which might happen at either of the support levels above $9,000.

Unfortunately, the price has continued to barely move, just going sideways on ever-decreasing volatility. However, this can mean that the longer the situation goes on, the more explosive the eventual breakout will be.

I think all that can be done here is wait for the price to either break below $9,000 which would be a bearish sign, or above $9,284, which would be a bullish sign.

Bulls who have faith in the long-term prospects of Bitcoin might be ready to take a long trade from support levels near $9,000, but would probably do better to wait until the price breaks above $10,000 as that is probably what it will take for truly strong bullish momentum to build up here.

BTC/USD

Concerning the USD, there will be a release of Retail Sales data at 1:30 pm London time.

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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