BTC/USD Forex Signal: Consolidating Below $11,553

BTC/USD: Watch for bullish breakout opportunity

Last Thursday’s signals may have produced a losing trade from the bearish rejection of the resistance level at $11,539 but the entry candlestick was very large and so would have been best ignored.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only 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 $11,407, $11,185, or $11,023.
  • 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.
  • 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 run.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,553, $11,804, $11,959, or $12,105.
  • 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.
  • 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 technical picture now was one of consolidation below the new pivotal resistance level at $11,539.

I was hoping to take a bullish bias following a second consecutive hourly close above $11,539 if it set up.

This was a good call as the price was unable to make a sustained break above that level which did turn out to be pivotal.

I have had to adjust that resistance level upwards slightly, but the dominant technical picture is unchanged with an ongoing bullish consolidation beneath that area.

I will take a bullish bias if we get two consecutive hourly closes above $11,553 to the next resistance level, as the price chart suggests a bullish breakout beyond that price could develop some bullish momentum.

BTC/USD

Concerning the USD, the Chair of the Federal Reserve will be giving a minor speech at 1 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.