BTC/USD Forex Signal

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Bitcoin: remains bullish below new 1-year high near $9k

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm Tokyo time Friday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436 or $7,830.

  • 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.

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BTC/USD Analysis

I wrote yesterday that I thought there was every reason to be bullish here in line with the long-term trend. I was ready to take an immediate bullish bias if the price were to retrace to the nearest support at $8,436 and make a strong upwards bounce there. As long as this support at $8,436 held, it made sense to be bullish and hope for new higher highs at $9,000 and above.

This was an acceptable call as the price has risen a little over the past 24 hours after being supported at the nearest key level, which is a bullish sign.

There is no change to the technical picture until the price breaks one of the nearby support or resistance levels.

My preference would be for a long trade entry following a strong bounce at the nearby support – I would take a bullish bias if that happens, in line with the long-term bullish trend.BTCUSDRegarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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.