BTC/USD Forex Signal

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Bitcoin: Bullish breakout holds above long-term trend line

Yesterday’s signals were not triggered, as none of the key levels were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 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 $8,893, $8,458, or $8,102.

  • 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

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,489 or $10,440.

  • 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 we now had a much more bullish picture, and the support at $8,893 was likely to be strong as it was now very confluent with the broken trend line and may act as support.

This was a reasonably good call as the price has continued to hold up above that level and the trend line.

There is a short-term bearish sign with new lower resistance forming at $9,489 close to $9,500.

It seems there is selling from $10,000 but it is also true that we have a more bullish situation and the bulls should come back soon if the support at $8,893 holds up after it next gets tested from above. For this reason, I would still look to take a bullish bias following a solid bounce at that level later.BTCUSDRegarding the USD, there will be a release of CB Consumer Confidence data at 2pm 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.