BTC/USD Forex Signal

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Bitcoin: Bearish breakdown but $9,800 holds for now

Yesterday’s signals produced a long trade from the hourly inside candlestick forming a bullish rejection of the support level at $9,800. It is currently in profit but should be monitored carefully.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time Friday.

Long Trade Idea

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $9,500.

  • Put 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 $9,974 or $10,152.

  • Put 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 I saw bearish pressure as building, but bears may find it difficult to push the price below $9,800.

This was an excellent call, as we got the bearish breakdown of the consolidating triangle which then found support at $9,800.

It seems that the price is rebounding from $9,800. If it reverses and ends today below that level, that would be a bearish sign.

A short trade from $9,974 looks attractive if a bearish rejection of that level sets up later, and I would take a bearish bias if that trade opportunity presents itself today.BTCUSDRegarding the USD, there will be a release of Philly Fed Manufacturing Index data 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.
Learn more from Adam in his free lessons at FX Academy.