BTC/USD Forex Signal

|

Bitcoin: New 1-Year High near $9k

Last Thursday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time Tuesday.

Long Trade

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436.

  • 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 $8,893, $9.003, or $9,238.

  • 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.

Great trade opportunities are waiting. Don't miss it!
TRADE NOW

BTC/USD Analysis

I wrote last Thursday the due to the selling earlier above $8,000 the picture looked 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.

This wasn’t a great call, but it was enough to keep out of trouble as ever since I wrote that, the price has been rising and continued to rise to a new 1-year high.

Bitcoin has almost doubled in value in recent weeks and this new high just under $9,000 presents a much more bullish picture. There is a strong long-term bullish trend so traders should consider getting interested in Bitcoin again.

I would take a bullish bias today if there were a strong bounce at the support level of $8,436.BTCUSDThere is nothing important due today concerning the USD. It is a public holiday today in the U.S.A.

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.