BTC/USD Forex Signal

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Bitcoin: More bearish below $8,047

Yesterday’s signals were not triggered, as there was no bullish price action at $8,247.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,048 or $7,754.
  • Place the stop loss 1 pip below the local swing low.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.

Short Trade Ideas

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,247, $8,458, or $8,893.
  • Place the stop loss 1 pip above the local swing high.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.

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

We got the bearish break below the lower level, and the price has continued to basically move down since that break, so this was a reasonably good call.

All else being equal, it looks as if the price will continue downwards and reach the next support level just above $8,000. We have a weak long-term bearish trend.

If the price keeps falling and reaches the $7,750 area, this could be a long-term buying opportunity, as it is a key recent inflective low, should we see a bullish double bottom form here.

Alternatively, if the price breaks lower than $7,750, we could see a strong fall to much lower levels.

I would wait until the $87,750 level is reached before deciding whether to get involved here.

btcusd

Concerning the USD, there will be a release of Retail Sales data at 1:30pm London time.

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.