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BTC/USD Forex Signal: Consolidating Above $60,000

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

My previous BTC/USD signal last Thursday could have produced a profitable long trade from the bullish bounce off $60,765.

Today’s BTC/USD Signals

  • Risk 0.75% per trade.
  • Trades may only be taken prior to 5pm Tokyo time Thursday.

BTC/USD Signal Today 15/05: Consolidating Above $60K (Chart)

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $61,180, $59,807, or $58,309.
  • 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.
  • 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 timeframe following the next touch of $62,321, $62,664, or $65,722.
  • 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.
  • 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 in my previous BTC/USD analysis last Thursday that the short-term bearish price channel was pushing the price lower – and the topping out price action near the recent swing high around $65,000 looked bearish too.

This was not an especially accurate or useful call, as although the price continued to move down for a few hours, it found strong support and rose firmly to make a higher high. This then turned into a consolidation pattern, which is what we have seen continue for almost one week now.

Despite this consolidation which suggest we may now see a slow reversal and more bullish price action, zooming out to look at a longer-term price chart still looks bearish due to the recent topping price action.

I think the lows of the recent week just above the big round number at $60,000 look very pivotal. A bearish breakdown below that area could be a great entry trigger for a new short trade.

On the other hand, a bullish breakout beyond $63,400 could produce a much stronger upwards price movement, as the price would then have room to rise all the way to $65,722 without encountering any obvious resistance.

Regarding the US Dollar, there will be release of US CPI, Retail Sales, and Empire State Manufacturing Index data at 1:30pm London time.

Ready to trade our daily Bitcoin signals? Here’s our list of the best crypto brokers worth checking out.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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