BTC/USD Forex Signal - 8 April 2019

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Last Thursday’s signals were not triggered, as unfortunately the bullish price action took place slightly below $4,836.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am New York time Monday and 5pm Tokyo time Tuesday.

 Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $4,824 or $4,374.
  • 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 $5,345, $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.

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BTC/USD Analysis

I wrote last Thursday that there was no reason not to be bullish but to be safe its best to wait for the price to start trending up over the short term – it has been flat over recent hours. I was ready to take a bullish bias if there were a strong bullish bounce following a bearish retracement to the support at $4,836. If Bitcoin can go on and clearly break the psychologically important $5,000 level, then we could be seeing the start of another major upwards movement in price after many boring months of little movement.

This was a great call and the situation has played out as I thought it would, although unfortunately the bounce was just below $4,826.

The price has been held by the resistance at $5,345 and we have a potentially bearish double top which might have formed there, so a sustained break above that level would be a bullish sign. There may also be new higher support at $5,240.

I remain medium-term bullish as long as the price remains above $5,000 which is an important psychological level. This might an interesting time to be involved in Bitcoin again.

btcusd

There is nothing of high importance due today concerning the USD.

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