BTC/USD Forex Signal - 29 October 2019

Adam Lemon

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.

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.

About the Author
Adam Lemon

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.
Learn more from Adam in his free lessons at FX Academy

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