Home Bitcoin NewsBitCoin Forex Weakly Breakout from Price Channel

Weakly Breakout from Price Channel

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The picture is a little more bullish, but the price is still being suppressed by the triple top we see rejecting the resistance level at $9,293.

Strong resistance levels above price channel

Yesterday’s signals may have produced a losing trade from the initial bearish price action at $9,171.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered before 5pm Tokyo time Friday.

Long Trade Idea

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,063.
  • Place the stop loss $50 below the local swing low.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 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 time frame following the next touch of $9,292, $9,384, or $9,600.
  • Place the stop loss $50 above the local swing high.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 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 even though the price may break above the top of the descending channel, it would be hard to be bullish as there are still a few key resistance levels just above that area which are likely to suppress the price even if we do get a breakout.

I wanted a short trade at a rejection of the upper trend line of the price channel.

This was a good call as the price did make a bullish breakout, but it has been muted as I suspected. There was no bearish price action at the trend line, so my call was at least enough to keep out of trouble as well as being accurate over the day.

The picture is a little more bullish, but the price is still being suppressed by the triple top we see rejecting the resistance level at $9,293.

I would be bullish later if we get two consecutive hourly closes above $9,384 because technically this looks like being the pivotal point that bulls are going to have to push the price past in order to get a stronger bullish move going.

BTC/USD

Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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