BTC/USD Forex Signal

Bitcoin: Bullish consolidation above $8,893

Last Thursday’s signals were not triggered, as none of the key levels were reached during that day’s session.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time Tuesday.

Long Trades

• Long entry at a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $8,610.

• Put the stop loss 1 pip 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 Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,246 or $9,438.

• Put the stop loss 1 pip 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 last Thursday that I took a weakly bullish bias and would enter a long trade if we got a strong bullish bounce at either $7,930 or $7,754. If the price can get established above $8,340 that would be a very bullish sign and indicate that we would probably see a break of the multi-month high close to $9,000 soon.

The picture has become much more bullish as although my support levels were unfortunately not hit, Bitcoin has advanced strongly since last Thursday and breached $9,000 so the second part of my forecast was accurate.

Bitcoin tends to respect technical levels of support and resistance, and it is notable how several obvious levels which were resistant have flipped to become new support levels.

The picture now shows a bullish consolidation between $8,893 and $9,400. I would be very, very careful in taking any short trades here now over the next day. I am fine with long trades.

A sustained break above $9,438 would be a very bullish sign.There is nothing important due today concerning the USD.