BTC/USD Forex Signal: Consolidation Above $28,607

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

Previous BTC/USD Signal

My signal yesterday was not triggered, as none of the key support or resistance levels were reached.

Todays BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm Tokyo time Thursday.

Long Trade Ideas

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $28,607, $27,981, or $27,487.

• 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

• Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $33,445 or $33,828.

• 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 yesterday that I saw Bitcoins recovery from the price area below $28,607 as technically significant.

I thought that if the support level at $28,607 did not break down, the next likely price movement for Bitcoin was upwards to the next resistance level at $33,445.

The price has not advanced significantly yet but continues to consolidate within its obvious short to medium-term range above $28,607.

If this nearby support level at $28,607 holds, I think the line of least resistance will be upwards, so I still expect an upwards price movement to happen as the next major directional move.

If the price does fall and get established below $28,607 that would be a bearish sign and could signal the start of a much stronger fall in the price. However, this is much less likely to happen after the price recovered from a drop into that price area last week.

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