BTC/USD Forex Signal

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Bitcoin: $10,204 the pivotal point

Yesterday’s signals were not triggered, as there was no bearish price action at $9,924.

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 $9,903 or $9,962.

  • 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 $10,204, $10,359, 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 although the technical picture had become slightly more bullish, I thought that the bulls would find the level at $10,000 hard to break. I was partially correct as the price has not been able to get much above $10,000 but the bearish trend lines and the level itself have been invalidated, which are bullish signs.

Looking at the chart now, it seems clear that the real pivotal point which stands out is at about $10,200. The fact that the price has found support just above $9,900 is a minor bullish sign. I think the price is more likely to rise than to fall today, but the price is in an area where the action could become messy.

I prefer to sit on the side-line and wait for the price to get established above $10,200 before taking a bullish bias here.BTCUSDRegarding the USD, there will be a release of ISM Manufacturing PMI 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.