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BTC/USD Forex Signal: A More Bullish Consolidation Above $28,607 – 25 May 2022

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

Previous BTC/USD Signal

My last signal on 18th May was not triggered, as none of the key support or resistance levels were reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken before 5pm Tokyo time Thursday.

Long Trade Ideas

Go long after a bullish price action reversal on the H1 timeframe following the next touch of $29,559, $28,607, $27,981, or $27,487. 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.Remove 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 Trade Ideas

Go short after a bearish price action reversal on the H1 timeframe following the next touch of $33,445 or $33,828. 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.Remove 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.

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BTC/USD Analysis

I wrote in my last analysis on 18th May that if the nearby support level at $28,607 held, the line of least resistance would be upwards, so I expected an upwards price movement to happen as the next major directional move.

I was looking to take a long trade here if we had gotten a retracement to $28,607 and a bullish bounce off that level.

This was a good call, although while the support level at $28,607 has continued to hold, the price has not made a significant rise yet. However, the upwards movement I was looking for is looking more and more likely to materialise soon.

The bullish case is slightly strengthened by the new higher support level which was established at $29,559. However, this level is far less important and likely to be strong than $28,607.

My basic approach remains the same: $28,607 is the level to watch. A daily close below that level, and preferably below $28,000, could trigger a very strong downwards move all the way to $10k or below. However, it is starting to look as if this level will hold, and it may become a long-term low, offering a great risk reward ratio on a long trade entry, although the price faces several resistance levels above $33k.

I will take a short trade if we get a daily close below $28k today.

Regarding the US Dollar, there will be a release of the most recent FOMC Meeting Minutes at 7pm London time.

Euro zone’s overpriced housing market may sag if rates rise, ECB says

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