BTC/USD Forex Signal: Consolidation

Short-term direction remains unclear.

My previous BTC/USD signal on 18^th September was not triggered as there was no bearish price action when the resistance level which I had identified at $26,906 was first reached.

• Risk 0.75% per trade.
• Trades must be taken prior to 5pm Tokyo time Friday.

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $25,986, $26,906, or $27,536.
• Put the stop loss $100 below the local swing low.
• Move 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 ride.

• Short entry after a bearish price action reversal on the H1 timeframe following the next touch of $26,534, $26,906, or $27,536.
• Put the stop loss $100 above the local swing high.
• Move 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 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.

I wrote in my previous BTC/USD analysis on 18^th September that both the levels at $26,440 and $26,906 looked reliable, but I thought the long trade would be a better opportunity if it set up.

This did not work out very well and did not produce any good trades, but I was correct to look on the long side.

Markets are seeing a lot of risk-off movement right now, with the US Dollar powering ahead against most major currencies.

It is therefore notable that Bitcoin does not seem to be falling against the US Dollar, although the price is just going sideways. If anything, I suspect an upwards price movement beyond the current range is suggested as more likely than a downwards one from the recent price action.

Despite that, I think that Bitcoin is really looking quite dull for traders, beyond possible scalps from reversals at either $25,986 or $26,534.

Concerning the US Dollar, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.

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