Home Latest News BTC/USD Forex Signal: Finding Support at $19,135 – DailyForex.com

BTC/USD Forex Signal: Finding Support at $19,135 – DailyForex.com

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High US CPI data today may cause further bearish breakdown.
My previous signal last Wednesday was not triggered as there was no bearish price action when the resistance level which I had identified at $20,516 was first reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.
Trades may only be entered before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $19,315, or $19,164.
  • Place the stop loss $100 below the local swing low.
  • Adjust 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 $20,041, $20,280, $20,516, or $20,690.
  • Place the stop loss $100 above the local swing high.
  • Adjust 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.

BTC/USD Analysis

I wrote in my previous analysis last Wednesday that the price action was beginning to look bullish despite the long-term bearish trend, showing a cup and handle chart pattern, which suggested the price was likely to rise.
I thought that a daily (New York) close above $20,516 would suggest the price was likely to continue rising to at least $21,141 over the coming days.
I was correct to look to the bullish side, as the next few days saw a rise in the price, although there was no daily close that above $20,516.
After making a recovery from very key lows around $19k, the Bitcoin price bounced back, but began to fall again over recent days as risk sentiment deteriorated in the markets, which usually causes a selloff in Bitcoin.
The price is now resting and weakly consolidating just above the support level at $19,315. I suspect the price will move little until the US CPI data is released later, and if that data is higher than expected, Bitcoin will be likely to fall and possibly even make a technically significant breakdown. Although the lowest nearby key support level is at $19,164, I think the really significant area to watch is $18,500 – if we get a daily close below that level, I see BTC/USD falling at least as low as $14k quite quickly, and I would be happy to take a short trade at such a daily close.
Alternatively, it may be that these two nearby support levels hold, and that we even see a spike up in Bitcoin to at least one of the resistance levels after the CPI data. If that happens, a short trade on a low timeframe bearish reversal following a spike up could be an interesting day trade, say from $20,041 or $20,280.
BTC/USD signal
Concerning the US Dollar, there will be a release of CPI data at 1:30pm London time.
Ready to trade our daily Forex signals? Here’s a list of some of the best crypto brokers to check out.
Want to get a deeper understanding of how technical analysis and signals work? Watch videos, read articles, and learn all about the world of Forex at FXAcademy.com.
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.
Learn more from Adam in his free lessons at FX Academy
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Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.
Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.
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