Bitcoin/USD Forex Signal - 11 September 2017

Adam Lemon

Last Thursday’s signals were not triggered, as there was no bullish price action when $4389.93 was reached.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3974.75 or $3600.00.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is $50 in profit by price.
  • Take off 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 Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4380.89 or $4779.06.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is $50 in profit by price.
  • Take off 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.

BTC/USD Analysis

The signs are worsening for Bitcoin, with a new lower resistance level, a dominant bearish trend line, and a feel that the key support around the $4000.00 area is in danger. There is also a new steeper bearish trend line that can be convincingly placed within the chart below. If the price breaks down below the $4000.00 area, then we are in a Bitcoin bear market with a fall of more than 20% off the all-time high. Alternatively, if it holds, it could be a great buying opportunity.

I would not yet say there is a “bursting bubble”, but there could be a deep and sharp drop if the $4000 area does not hold.BTCUSD

There is nothing due today regarding the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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