BTC/USD Forex Signal - 10 January 2018

Wednesday, 10 January 2018 8:32

By: DailyForex.com

Yesterday’s signals were not triggered, as the bullish price action took place a little above $14,222.

 

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades may only be entered until 5pm Tokyo time, over the next 24 hours.

 

Long Trade

· Long entry after a bullish price action reversal on the H1 time frame following the next touch of $11,815.

· Place the stop loss 1 pip below the local swing low.

· Move the stop loss to break even once the trade is $200 in profit by price.

· Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

 

Short Trades

· Short entry after a bearish price action reversal on the H1 time frame following the next touch of $14,953 or $15,548.

· Place the stop loss 1 pip above the local swing high.

· Move the stop loss to break even once the trade is $200 in profit by price.

· Remove 50% of the position as profit when the trade is $200 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

Although the slightly bullish wide price channel remains intact, bulls should be worried by the way the price is selling off from resistance, and looking heavy enough to soon break the support level at $14,023. If the price does reach the supportive trend line, it might produce a good long trade, but if that trend line breaks there will be nothing to stop the price from falling to the $11,000 area which would then be a very severe test for Bitcoin which could turn into a panic and a further severe drop. What makes it even worse for the cryptocurrency is that Ethereum, the next largest crypto by market capitalization, is making new all-time high prices. Be careful of a long trade, but it could be a good long-term buying opportunity as these often come just when a situation looks on the edge of a disaster.BTCUSd

Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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