BTC/USD Forex Signal: Rising Wedge Pattern Persists

Adam Lemon

As Bitcoin is prone to explosive price movements, waiting for a breakout beyond $10,000 instead of getting in at support levels above $9,000 may save you a few losses.

BTC/USD: Support effectively holding

Yesterday’s signals were not triggered as the bullish price action took place a little way below the support level identified at $9,233.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 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 $9,190, $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 $9,400, $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 yesterday that bulls should not be worried at all as long as the support level at $9,233 continues to hold. However, action in Bitcoin was going to be relatively quiet until we get the long-awaited breakout beyond $10,000.

The price actually did break below $9,233 for a while before rising again.

The bullish wedge pattern continues, and the technical picture remains bullish but muted. Bulls really need to get the price beyond $10,000 for a major bullish breakout.

I remain basically bullish here and I am happy to take a long trade from a bullish bounce which may set up later from any of the support levels above $9,000.

The problem for bulls is that resistance levels below $10,000 which still exist have shows an ability to keep holding. As Bitcoin is prone to explosive price movements, waiting for a breakout beyond $10,000 instead of getting in at support levels above $9,000 may save you a few losses.

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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