August 14, 2022
  • August 14, 2022

BTC / USD Forex signal: shrinking triangle does nothing

By on June 7, 2021 0

A short-term bearish price channel is emerging.

Last Wednesday’s Bitcoin signals were not triggered as there was no bearish price action at any of the resistance levels that were reached that day.

Today’s BTC / USD Signals

Risk 0.50% per transaction.

Transactions must be completed before 5:00 p.m. Tokyo time on Tuesday.

Long business ideas

  • Long entry after a bullish price reversal over the H1 period after the next touch of $ 34,968, $ 33,475 or $ 31,953.
  • In law the stop loss $ 100 below the local swing low.
  • Move the stop loss to break even once the trade is $ 100 profit per price.
  • Take out 50% of the position as profit when the trade is $ 100 profit per price and let the rest of the position run.

Short business ideas

  • Go short after a bullish reversal in price action in the H1 period after the next touch of $ 36,792, $ 37,283 $ 37,855, $ 33,332 or $ 39,302.
  • Place the $ 100 stop loss above the local swing high.
  • Move the stop loss to break even once the trade is $ 100 profit per price.
  • Take 50% of the position as profit when the trade is $ 100 profit per price and let the rest of the position run.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle, or even just a engulfing candle with a higher close. You can operate these levels or areas by looking at the Price action that occurs at given levels.

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BTC / USD Analysis

I wrote last Wednesday that the dominant technical trait was the consolidating and shrinking triangle that had contained the price for several days. I thought a break out of the triangle might be significant, especially as the horizontal key support and resistance levels looked very balanced and spaced out.

We had a bullish breakout of this triangle last Wednesday and I said I would take a long bias if we got two consecutive hourly close above $ 39,048. We didn’t, and that call was enough to avoid trouble as the price has fallen quite steadily since breaking through that resistance level the next day.

The technical picture is now more confused as the price has just consolidated in the same zone despite the exit from the triangle. All we can see in the price chart now is a new bearish price channel in the short to medium term, whereas if we zoom out and look at the big picture we see a bubble burst and the price will go down. consolidate in a shoulder just above the $ 30,000 area. Therefore, in the short term, a fall in prices seems likely, whereas we might have a longer term buy if the price rebounds strongly to near $ 30,000 and starts to increase momentum. On the other hand, if the price goes below $ 30,000, I think it will likely drop to $ 20,000 or even $ 10,000 very quickly, giving short traders a nice opportunity for quick profit.

For today, I will be looking for short trades from bearish reversals at any resistance level from $ 37,283 or below, or for a long trade in the unlikely event that the price reaches and bounces at the level. support of $ 31,953.

BTC / USD

Regarding the USD, no major data release is expected today.