BTC/USD Forex Signal - 4 July 2019

Adam Lemon

Bitcoin: Bullish above $11,561

Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels which were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 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 $11,561 or $10,851.

  • 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 Idea

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $12,364.

  • 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.

BTC/USD Analysis

I wrote yesterday that the day’s pivotal point was very likely to be $10,851, and if that level held with a bullish bounce which was strong, I could see the price continuing up to the $12,500 area. I would take a bullish bias in this scenario.

This was a reasonably good call as the price moved up over the day and reached a high at about $12,500. The picture still looks quite bullish with a strong long-term bullish trend and a medium-term bullish move dominating too, although over the short-term the price is retracing. This suggests that looking for a long trade at a bullish bounce at the support of $11,561 will be the smart move, and I would take a bullish bias here in that scenario. If the price gets established below that level it would indicate a deeper bearish retracement is happening.BTCUSDThere is nothing of high importance due today regarding the USD. It is a public holiday in the U.S.A.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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