BTC/USD Forex Signal

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Bitcoin: Bearish below $8,893

 

Yesterday’s signals produced a short trade from the bearish rejection of the resistance level identified at $8,803 which is still open and in play.

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 $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 $8,893, $9,094, or $9,233.

⦁ 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 remained bearish and it looked as if the price would fall further as long as the new lower resistance level at $8,803 holds. This level actually did not hold, and the price is up very slightly over the past 24 hours, but there is really nothing in this small technical change.

The outlook remains bearish: we are well within a symmetrical bearish price channel, with key resistance levels broadly holding. The price action is moving down in convincing swings to make new lows on both the short and medium terms.

I maintain a bearish bias on Bitcoin below $8,893.BTCUSDConcerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.

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