BTC/USD Forex Signal

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Bitcoin: Bottoming from $7,463

Yesterday’s signals were not triggered as there was no bearish price action when the former resistance level at $7,793 was reached. Flipped resistance at 7793 to become new higher support and perhaps also 7923

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of or $7,793 or $7,463.

  • 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 $8,153 or $8,340.

  • 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 the picture had become more bearish, but we may be seeing a double bottom form at $7,463. Therefore, I was ready to take a bullish bias later if the price could trade above $7,800 for a couple of hours consecutively. This is what happened, with a strong upwards push flipping the level at $7,793 from resistance to new higher probable support, and although the price is currently a little below where the long trade entry would have been made, there is another higher support level we can draw in the price chart at $7,923 and at the time of writing the price is continuing to hold above that too. These are bullish signs, yet the fact that the price has made such a deep retracement from its recent multi-month high also suggests that bulls may struggle to drive the price much higher over the short-term. So overall, I see the picture as very weakly bullish, and I will get more bullish as the price gets established above each subsequent higher resistance level shown in the price chart below.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.