BTC/USD Forex Signal - 8 January 2018

By: DailyForex.com

No signals have been given this year yet.

 

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades may only be entered between 8am New York time and 5pm Tokyo time, during the next 24 hours.

 

Long Trade

· Long entry after a bullish price action reversal on the H1 time frame following the next touch of $14,222.

· 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 $17,900 or $18,410.

· 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

Bitcoin has been slowly recovering ever since the near 50% retracement in price which occurred last month. Bitcoin has gone through several such severe corrections in its history, and there is no compelling reason not to see the fall as a healthy development. That might not be very comforting to long-term investors who bought near $20,000 and after most such severe corrections, Bitcoin took a long time to make new highs. This suggests that we are not going to see $20,000 any time soon and that volatility is going to decrease.

Over the medium term, the price is in a wide and narrowly bullish channel, but the movement is quite consolidative, making it a little difficult to trade long. Fortunately, technical support and resistance levels tend to work well with Bitcoin, so I see the best opportunities as likely to arise at rejections of such levels. I am more bullish than bearish, so long trades are preferred. The price is currently sitting right on a support level which may extend all the way down the big round number at $15,000. There could be a buying opportunity here, but it is too early to tell. The level at $14,222 looks extremely attractive.


BTCUSD

There is nothing important due today regarding the USD.

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.