BTC/USD Forex Signal

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Bitcoin: Bearish trend with heavy resistance

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

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,073, $8,893, or $8,610.

  • 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 $9,660, $9.924, or $10,204.

  • 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 we had a more bearish picture but there was always the chance of long-term buyers stepping in, and that the support level at $9,073 may be very strong. I also thought that the level at $9,660 was likely to be the first pivotal point which would give us an indication of the major direction of movement over the coming day. This was a pretty good call overall as the level at $9,660 held and although there has not been much movement over the past 24 hours, the direction is slightly down.

There is no question we are getting a more decisively bearish picture here. There is a lot of pressure weighing down on the price: two medium-term bearish trend lines, which can be seen in the price chart below, and four horizontal resistance levels between $9,660 and $10,359. I think any of these could provide a good short trade entry opportunity. Things will get very interesting as both of these bearish trend lines get established below the psychological $10,000 level.

I would take a bearish bias today following a solid reversal following a retracement to any of the resistance levels outlined above.BTCUSDConcerning the USD, there will be a release of CB Consumer Confidence data at 3pm 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.