BTC/USD Signal 15/12: Bullish Square Root Pattern (Chart)

(MENAFN- Daily Forex) My previous BTC/USD signal on 8th December was not triggered.

Today's BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken prior to 5pm Tokyo time Tuesday.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Long Trade Ideas

• Long entry after a bullish price action reversal on the H1 timeframe following the next touch of $89,507, $87,884, or $85,369.
• Place the stop loss $100 below the local swing low.
• Adjust 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

• Short entry after a bullish price action reversal on the H1 timeframe following the next touch of $91,589, $94,196, or $97,058.
• Place the stop loss $100 above the local swing high.
• Adjust 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/USD Analysis

In my last BTC/USD forecast exactly one week ago, I thought the picture was starting to look more bullish, and I was ready to go long if we saw two consecutive higher hourly closes above $91,924 with neither hour having a strong upper wick.

This was a good call insofar as the price exceeded $91,924 then quickly dropped and made a major move down, so I was correct at identifying the day's pivotal point.

The technical picture now has become very interesting – the recent price pattern can be seen as both a bearish wedge, or as a bullish“square root” pattern, with a higher low and then two equal higher lows above that to tell which is which?

• If the price gets established above $94,196 that will be bullish, and we will be likely to then see a further upwards move.
• If the price gets established below $87,884 then we will probably see a further decline. If the price goes on to break below $80,000 then we could see a very significant drop.

This means that as long as the price remains between $94,196 and $87,884 it will probably be a good idea to avoid trading Bitcoin.

There is nothing of high importance due today regarding either Bitcoin or the US Dollar.

EURUSD Chart by TradingView

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