SIGNAL FOREX

BTC/USD Forex Signal: Medium-Term Bearish Price Channel – DailyForex.com


$46,595 is likely to be today’s pivotal point but already hit.

Last Monday’s BTC/USD signal was not triggered as the bullish price action took place below the only support level which was reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken prior to 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $46,595 or $43,836.

  • Place the stop loss $100 below the local swing low.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 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 $48,675 or $49,835.

  • Place the stop loss $100 above the local swing high.

  • Move the stop loss to break even once the trade is $100 in profit by price.

  • Take off 50% of the position as profit when the trade is $100 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.

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BTC/USD Analysis

I wrote last Monday that Bitcoin was slowly turning more bearish as it could not get above $50k and support levels were providing bullish bounces but only over the short-term.

I thought that if the price broke below $46,595 it would be likely to fall quite quickly to $43,836.

This was a good call as the price has continued to move down slowly since then, forming a symmetrical bearish price channel which is shown in the price chart below. I was also correct about the importance of the support level at $46,595 which has continued to hold as firm support.

There is therefore little change to the technical picture from Monday, with any bearish breakdown below $46,595 looking likely to be significant as it will probably trigger a fast additional bearish movement. The price channel supports this.

Longer-term traders are probably best advised to wait for such a breakdown before taking a short trade, while scalpers could find a good long trade opportunity from a bullish bounce from a retest of the support level at $46,595.

BTC/USD

Concerning the USD,  there will be a release of the ADP non-farm employment payrolls forecast at 1:15pm London time, followed by ISM Manufacturing PMI data at 3pm. There is nothing of high importance scheduled today concerning Bitcoin.

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