BTC/USD Forex Signal: Bullish Consolidation

Adam Lemon

Pivotal area around $10,847 

Yesterday’s signals were not triggered as the bearish price action took place slightly above the resistance level identified at $10,841.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken between 8 am and 5 pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,557, $10,421, or $10,351.
  • Place 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.
  • Remove 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,847 or $11,023.
  • Place 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.
  • Remove 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 picture remained weakly bullish with the big story being long-term buying at or near the big round number at $10,000.

We had some short-term bearish momentum but a lot of support at or just above the support level identified at $10,557 where I was looking for a long trade entry.

The price has broadly continued its weakly bullish consolidation pattern, with the resistance near to the current price more or less holding.

There is definitely more potential on the bullish side, but price advances continue to be slow.

The best approach right now is still to look for long-term buys at or close to the $10,000 level.

I think it will be a significantly bullish development if the price can get established above the higher resistance level shown in the price chart below, at $11,023.

BTC/USD

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3 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

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.