BTC/USD Forex Signal: Bullish Price Channel Holds

Adam Lemon

The best approach to trading Bitcoin today is likely to be waiting for a bullish breakout beyond the descending trend line, which is currently sitting at about $18,720.

Yesterday’s signals were not triggered as none of the key levels identified have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $17,097, $16,898, or $16,173.

  • 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.

  • 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 $19,977, or $20,000.

  • 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.

  • 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 I saw a mixed technical picture for Bitcoin. On one hand, we had the price close to a record high and well established within a symmetrical bullish price channel.

On the other hand, we also saw bearish topping price action at the highs over the medium term, with the price being held down by an internal bearish descending trend line.

This was a good call as the price has remained within both the ascending price channel and descending short-term trend line, as can be seen in the chart below.

This means there is no meaningful change to the technical picture, which is still bullish, but bulls need to break this inner trend line.

The price is far from key support or resistance levels.

Therefore, the best approach to trading Bitcoin today is likely to be waiting for a bullish breakout beyond the descending trend line which is currently sitting at about $18,720.

I will take a bullish bias if we get two consecutive hourly closes above that trend line.BTC/USDRegarding the USD, there will be a release of CB Consumer Confidence data at 3pm 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

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