BTC/USD Forex Signal - 23 May 2019

Bitcoin topping out at $8,000?

Yesterday’s signals may have produced a long trade entry at $7,582 but the price action there has not truly been quick and bullish enough to justify such an entry. If a trade has been taken here, it does not look now as if it going to be a winning trade.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades can be taken 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 $7,202 or $6,811.

  • 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 $8,436, $8,593 or $8,893.

  • 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.

BTC/USD Analysis

I wrote yesterday that the price action was looking consolidative and that I would take a bullish bias at a bounce at $7,583 or if the price could break above $8,436.

We had a very, very weak bounce at $7,583 but the price looks heavy and likely to break below that level. I therefore would not want to take a long trade from there now. Due to the selling earlier above $8,000 the picture looks a little more bearish and less consolidative. I would still be ready to take a long trade from lower support at $7,202. I would take a very weak bearish bias if the price can close below $7,583 for a couple of hours consecutively later.BTCUSDThere is nothing important due today concerning the USD.

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.