BTC/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at $4,008.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken from 8am New York time Thursday until 5pm Tokyo time Friday.

Long Trades

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $3,998, $3,936, $3,921, or $3,876.

  • 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 Trade

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4,008.

  • 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.

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BTC/USD Analysis

I wrote yesterday that despite the relatively strong upwards movement which had probably flipped the former resistance levels at $3,936 and below to become new higher support, there were initial signs that the price may be topping out near $4,000 where is there is key resistance close by. If the price could close above $4,008 for a couple of hours, that would be a bullish sign.

We have seen something between these two scenarios play out – the resistance at $4,008 has been invalidated, and we have seen several closes barely above it, yet we are still seeing action suggestive of topping out. However, there is another bullish sign which is the new higher support level forming at $3,998 but I am not optimistic that it will hold. I think this is going to be today’s pivotal level and will probably break down, and that run down may be limited but fast so should probably be traded on shorter time frames, if the spread is tight enough to make it worthwhile. Alternatively, if the price can close above $4,040 for a couple of hours consecutively, that would be a bullish sign.BTCUSDRegarding the USD, there will be a release of Final GDP data at 12:30pm 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.