BTC/USD Forex Signal - 25 April 2019

Adam Lemon

Yesterday’s signals were not triggered, as there was insufficiently bullish price action when $5,441 was hit.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time Friday. 

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,355 or $5,184.
  • 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

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $5,482, $5,645, or $5,777.
  • 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

I wrote yesterday that I thought the price was likely to consolidate between the nearest support and resistance levels and may have already bottomed at the new support. I also thought that a break above $5,645 would be a very bullish sign if it happened that day. The latter statement was a good call, but the support did not hold – we have seen a breakdown and new lower resistance form at $5,482. This is a bearish sign as it has not happened for some time, so I think we are likely to see a pause in the medium-term bullish trend which we have seen in Bitcoin for some time now. This means it may be wise to stand aside from trading Bitcoin for a while. I would be cautiously bullish if the price can get back up above $6,482 today and I think this is going to be the day’s pivotal level.

btcusd

Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.

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

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