BTC/USD Forex Signal - 22 August 2017

Yesterday’s signals were not triggered as there was no bullish price action at any of the anticipated support levels which were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken only before 5pm New York time today.

Long Trade 1

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3000.00.
  • Put the stop loss 1 pip 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 Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $3934.40 or $4187.57.
  • Put the stop loss 1 pip 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

Bitcoin has reached an important moment. This does not quite look like a bursting of a bubble yet, but it is getting closer. The price fell by more than 10% in a few hours beginning close to the end of yesterday’s New York session. Although there has been some recovery from the low with a possible double bottom holding at $3600.00, the fact that support levels below $4000.00 have decisively broken down should be of grave concern to buyers still holding long-term long positions. The closest resistance level, which is new, is at $3800.00, and so far as the London session gets underway, it is holding as resistance – another bad sign for bulls. I think it will not hold, and the real test will be the resistance level at $3934.40, which could give a good short opportunity later if the price bounces there. Today is probably not going to be a good day for buying.BTCUSD

There is nothing due today concerning the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.