BTC/USD Forex Signal

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Bitcoin: Pivotal points at $7,753 and the $8,250 area

Yesterday’s signals were not triggered, as there was no bullish price action at $8,125.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 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 $7,754 or $7,202.

  • 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,102, $8,161, or $8,458.

  • 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 the picture had become more bullish due to the break of the former bearish trend line. I thought that as long as $8,125 survived a test from above and produced a bullish bounce, it would make sense to take a weakly bullish bias later once that happens. This was a good call as that level broke cleanly when it was finally reached and moved down further, so it did work as a pivotal point for the day.

Bitcoin is getting interesting now, because there is a supportive trend line and a long-term inflective low at $7,753 which may produce a long-term bullish reversal. On the other hand, we can draw a new medium-term bearish trend line which is pushing the price down, and that line is currently sitting at about $8,263. Both of these levels are very likely to be pivotal points. I would wait for a rejection or breakout at either, and if something decisive, strong and convincing happens there, follow along with it. I suspect that the best scenario would still be a long from $7,753 or a price very close to it.BTCUSDThere is nothing of high importance due today concerning 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.