BTC/USD Forex Signal

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Bitcoin: Very bullish

Yesterday’s signals were not triggered as there was no bearish price action when the resistance level at $12,171 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must 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 $11,624 or $11,485.

  • 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 $12,804 or $13,176.

  • 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 has now risen by more than 10% from $10,200 and right now looked as if it was going to move still higher today.

I thought we would over the day see a further rise to at least $12,171 and therefore I wanted to take a bullish bias here until at least that level if the price was above $11,760 at 9am London time. It wasn’t, but my overall bullish analysis was proven to be correct as the price has now reached the resistance level at $12,171. Initial indications are that this level is being breached and invalidated, which would be a bullish sign.

There is no reason not to be bullish, we have a strong medium-term bullish trend and it seems to be independent of any move in the Dollar – it is about Bitcoin, which is a good sign.BTCUSDThere is nothing of high importance 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.