Home Forex Signals BTC/USD Forex Signal: Medium-Term Consolidation – DailyForex.com

BTC/USD Forex Signal: Medium-Term Consolidation – DailyForex.com

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BTC/USD: Centre of gravity at $10,700 

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at any of the three resistance levels which were reached that day.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken prior to 5 pm Tokyo time Wednesday.

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 $10,833, 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.

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BTC/USD Analysis

I wrote last Thursday that long-term buys from support at or below $10,000 looked like the best potential opportunity here. This was a relatively OK call although the low that was made the day of my forecast was a little above $10,000, from where the price has risen over the past few days.

The technical picture is somewhat bullish insofar as the big round number at $10,000 continues to hold and make itself felt as support. However, there is no doubt that we have also seen a sequence of lower major swing lows over the past 10 days or so, which is a sign of a longer-term consolidation.

Overall, I think Bitcoin remains a good long-term buy at $10,000 or at a slightly lower price than $10,000.

BTC/USD

There is nothing of high importance scheduled today regarding the USD.

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