BTC/USD Forex Signal: Recovery from Dangerous Breakdown

[ad_1]

The price has room to rise to $33,445.

Previous BTC/USD Signal

My previous signal on 9th May was not triggered, as there was no bullish price action at any of the key support levels I had identified when they were reached that day. Unfortunately, the price came close to $33,828 but never quite reached that level.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $28,607, $27,981, or $27,487.
  • Put 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.
  • Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to ride.

Short Trade Ideas

  • Go short after a bearish price action reversal on the H1 timeframe following the next touch of $33,445 or $33,828.
  • Put 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.
  • Remove 50% of the position as profit when the trade is $100 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.

Advertisement

BTC/USD Analysis

I wrote in my last piece on 9th May that Bitcoin had fallen with strong bearish momentum after breaking down from a consolidating triangle chart pattern and entered what had historically been a very pivotal zone, from the support level at $28,607 to approximately $35k. I thought that if the price could get established below the support level at $28,607 it could quickly fall to $10k or even lower.

The price did get established below $28,607, but my call was not great as the price rebounded quite firmly and is now making a bullish consolidation above what is again the nearest key support level at $28,607.

I see Bitcoin’s recovery from the price area below $28,607 as technically significant, showing that buyers are still prepared to step in strongly when Bitcoin reaches long-term lows.

If the support level at $28,607 does not break down, I see the next likely price movement for Bitcoin as upwards to the next resistance level at $33,445.

I will be happy to take a long trade here if we get a retracement to $28,607 and a bullish bounce off that level.

BTC/USD

Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time.

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using EkamFX services, please acknowledge all of the risks associated with trading. The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor. The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 EkamFX.com. All Rights Reserved.