BTC/USD Forex Signal: Bearish Head and Shoulders?

BTC/USD: Pivotal point at $13,485

Yesterday’s signals were not triggered, as there was no bullish price action at $13,368.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may be taken prior to 5pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $12,288 or $12,105.
  • Put the stop loss $50 below the local swing low.
  • Adjust 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 ride.

Short Trade Ideas

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $13,330, $13,485, or $14,058.
  • Put the stop loss $50 above the local swing high.
  • Adjust 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 ride.

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 yesterday that I remained bullish on Bitcoin and I saw a long trade from a bullish bounce at the new higher support level as a great potential new long trade opportunity.

This did not set up, with the price turning bearish and breaking through the support instead.

The technical picture has suddenly become considerably more bearish, with two new lower resistance levels printing and the beginning of the final shoulder of a bearish head and shoulders pattern capped at $13,485.

I see the resistance zone just above the current price area from $13,485 to $13,330 as likely to be very pivotal.

I will be happy to take a long trade if we get two consecutive hourly closes later above $13,485, or a short trade if we get a strong bearish failure in the area of the zone as price tries to rise above it.

Bitcoin is definitely becoming more interesting to trade in recent days as it advanced to new highs despite sour risk sentiment. It could be Bitcoin is coming to be seen as more of a hedge against a crashing stock market, despite its typically positive correlation with the performance of global stocks.BTCUSDRegarding the USD, there will be a release of advance GDP data at 12:30pm London time.

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