BTC/USD Forex Signal

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Bitcoin: Bulls vs bears from $8,458 to $8,24

Last Thursday’s signals produced a losing long trade from the bullish rejection of $8,533.

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 after a bullish price action reversal on the H1 time frame following the next touch of $8,247, $8,048, or $7,754.
  • 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 Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,458 or $8,893.
  • 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 last Thursday that the day’s pivotal point was very likely to be $8,533. This was good for a few hours, but the price eventually broke down with a strong bearish thrust.

We have a long-term bearish trend, but it has become very weak. There were long-term buyers close to $7,750 but the price action is not showing any real bullishness beyond that.

Over the shorter-term, the price is evenly balanced within a narrow range from $8,247 to $8,458. A break above the upper level will be a mildly bullish sign while a break below the lower level would be a little more bearish.

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There is nothing of high importance due today regarding the USD.

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.