BTC/USD Forex Signal: Weak Bullish Breakout from Triangle

Adam Lemon

Bulls who had faith in the long-term prospects of Bitcoin might be ready to take a long trade from support levels near $9,000.

BTC/USD: Yet almost no bullish momentum

Last Thursday’s signals were not triggered, as there was no bullish price action when the price first reached $9,109.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered prior to 5 pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,142, $9,097, or $9,011.
  • Put the stop loss $50 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

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,284, $9,352, or $9,462.
  • Put the stop loss $50 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.

BTC/USD Analysis

I wrote last Thursday that the best course of action would be to 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 had faith in the long-term prospects of Bitcoin might be ready to take a long trade from support levels near $9,000.

This was an accurate call as despite falling heavily last Thursday, the price held up from $9,000 which would have been a good place to buy at. However, the lack of momentum is reflected in the fact that we see the area at $9,284 continues to hold, in fact, it has not even been touched.

Technically, we have a slightly more bullish picture, after the $9,000 area held again, and the price has edged up to break above the upper trend line of the readjusted consolidating triangle.

This suggests bulls have a slight edge.

I would be prepared to be bullish from another bounce near the $9,000 or if the price can get established above $9,284 later so my stance here is basically unchanged.

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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