BTC/USD Forex Signal: No Real Change

Adam Lemon

If the price can get established above $9,352 later, it will be a bullish sign.

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

Yesterday’s signals were not triggered, although the resistance level at $9,352 did cap the high of the day practically to the pip.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5 pm Tokyo time Wednesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,109 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 $9,200, $9,260, or $9,352.
  • 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 yesterday that the technical picture saw bulls and bears very evenly matched over the short-term due to the narrowing triangle formation.

However, I was ready to take a cautiously bullish bias if we had gotten two consecutive hourly closes above $9,352.

This was a good call, at least insofar as it correctly identified the pivotal point of the day. As the price failed to break above that level, the action turned bearish.

The technical picture remains inconclusive: volatility is very low, and the narrowing, consolidating triangle pattern can be redrawn, as shown in the price chart below.

I think there is little point being bearish above $9,000, but a long trade from a bounce at $9,109 or especially $9,010 would be attractive.

If the price can get established above $9,352 later, it will be a bullish sign.

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.