BTC/USD Forex Signal - 6 June 2019

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Bitcoin Bullish above $7,871

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

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 $7,463 or $7,202 or $6,811.

  • 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, $8,340, or $8,610.

  • 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 technical picture had become more bearish as the retracement deepened despite the long-term bullish trend. The level at $7,837 was likely to be the day’s pivotal point and the early signs are that bulls will get the price established above it, which would be a bullish sign. The bullish trend may come back strongly, so I’d still be looking for a good long entry in this pair, maybe from a double bottom at $7,463.

This wasn’t a bad call in principle, but I was a little wrong about the level – it is $7,871 which the bulls are struggling to get the price established above.

There is no real change to the picture, everything will still probably depend upon $7,871 being breached, which would create a more bullish picture and maybe be the catalyst for a resumption of the strong long-term bullish trend. I would take a bullish bias if the price can trade above $7,871 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.