SIGNAL FOREX

BTC/USD Forex Signal: Bearish Below $11,023 – DailyForex.com


I was prepared to take a cautiously bullish bias on Bitcoin if we had gotten a bullish bounce at the nearest support at the time of writing.

BTC/USD: Bearish on risk-off sentiment

Last Thursday’s signals were not triggered, as there was no bullish price action when the price first reached the support level identified at $10,831.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken before 5 pm Tokyo time Tuesday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,620, $10,414, or $9,731.
  • 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 $11,023 or $11,460.
  • 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 although the U.S. Dollar was strengthening everywhere, it was making relatively little progress against Bitcoin. For that reason, I was prepared to take a cautiously bullish bias on Bitcoin if we had gotten a bullish bounce at the nearest support at the time of writing.

This was an OK call as there was no bounce there. The price did not fall by much in any case.

The technical picture has become more bearish in recent hours as risk-off sentiment seems to be reasserting itself, with money flowing into the Japanese Yen and to a lesser extent, the U.S. Dollar.

The important technical change is the new lower resistance level at $11,023 and the bearish double top we have seen in recent hours from a swing high just below that price.

There has been minor support starting at about $10,800 so although the price seems likely to move down over the short term, it may not get all the way to the nearest support level at $10,620.

BTC/USD

Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3 pm London time.

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