BTC/USD Forex Signal - 29 April 2019

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Last Thursday’s signals were not triggered, as the price cut quickly through every key support and resistance level which was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $4,824.
  • 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 Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,235, $5,355, or $5,513.
  • 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 last Thursday that I thought that we were likely to see a pause in the medium-term bullish trend which we had seen in Bitcoin for some time now. I said that this meant it may be wise to stand aside from trading Bitcoin for a while. This was a really good call as the price made a sharp downwards movement and has been consolidating below new resistance at $5,235, which is a bearish sign.

There is no long-term trend, but the longer the price stays below $5,235 the more bearish I will be. A strong reversal from that level might be a good short trade entry, as that level looks likely to be today’s crucial pivotal point.

btcusd

There is nothing of high importance 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.