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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

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 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.