BTC/USD Forex Signal

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Bitcoin: Bulls testing resistance above $10,000 again

Yesterday’s signals were not triggered as none of the key levels were reached, although the price did get close to $10,192 a few hours ago.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073 or $8,893.

  • 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 Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $10,192, $10, 426 or $10,742.

  • 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 price getting more solidly established below $10,000 was is a bearish sign and I was ready to take a weakly bearish bias here until $9,073 if the price would break firmly below $9,500.

This was a good call as the price never broke below $9,500 so it was enough to stay out of trouble here.

The price has recovered and is very close to testing the first key resistance level above $10,000. If the price can continue its recovery and start to move up and get away from this area below $10,000. I think it would be a definite bullish sign.

For now, it is probably best to watch and wait here. A failure to break resistance and another drop back below $10,000 is a very possible and more bearish scenario.BTCUSDConcerning the USD, there will be a release of Core Durable Goods Orders 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.