Previous BTC/USD Signal
My previous Bitcoin signal on 19th October was not triggered, as there was no bullish price action when the support level identified at $18,996 was first reached.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken by 5pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $19,463, $18,996, or $18,856.
- 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
- Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $19,939 or $20,532.
- 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.
BTC/USD Analysis
I wrote in my previous analysis on 19th October that the price of BTC/USD looked likely to
continue its existing dull consolidation pattern over the near term, flattening out above the $19k area showing very little price movement or general volatility, making Bitcoin unattractive to traders.
This was a good call as the price did little over that day and the net, before it rose from the $19k area, so I was also correct to see the hint that the line of least resistance was upwards.
The price showed signs of breaking out of this quite long-term consolidation around the $19k area a few days ago, rising quite strongly to an area above $20,500, but in recent hours the price has fallen hard to make a new 2-week low by bouncing quite firmly off the key support level at $19,463.
The support at $19,463 looks very strong, and I think that all we have seen here is volatility, not any real directional price movement. This suggests that the consolidation is likely to continue, which gives a potential long trade opportunity from $19,463 if the price falls to touch the level again before making another bullish bounce.
On the other hand, I think we see signs of resistance even earlier than expected confluent with the round number at $20k, so the price may struggle to get established above the $20k area, which would be a logical place to take profit in any long trade from $19,463.
I am not a fundamental fan of Bitcoin, seeing it as very over-hyped, but I do think that its reluctance to really get established below $19k does suggest that there may be a more long-term price rise ahead, or at least its more likely to happen than a long-term fall. For traders, it is hard to get much joy out of Bitcoin now – the Forex market and other asset classes are much more interesting right now.
Concerning the US Dollar, there is nothing of high importance scheduled today.
Ready to trade our free daily Forex trading signals? We’ve shortlisted the best MT4 crypto brokers in the industry for you.