BTC/USD Forex Signal

|

Bitcoin: Bullish consolidation above $8,893 continues

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 may only be entered 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 $9,222, $8,893, $8,458, or $8,102.
  • 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 $9,489 or $10,440.
  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

BTC/USD Analysis

I wrote yesterday that the best approach was likely to be taking a bullish bias above $9,489 and a bearish bias below $8,893. I suspected there may be more potential upside than downside, so a bullish breakout was likely to run further than a bearish one.

I stand by this analysis today, which was enough to keep out of trouble yesterday as neither of those levels given were breached yet.

The technical picture is a little more bullish still, as we have a new higher support level which formed within the consolidation zone at $9,222.

The price has more room to rise than fall, so I see the best opportunity likely to arise here as a long trade following a breakout above $9,489, If it happens, the next resistance level above $10,000 could be hit very quickly, so I would take a bullish bias if it happens.

btcusd

There 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.