BTC/USD Forex Signal

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Bitcoin: Bears back in full control

Yesterday’s signals were not triggered as none of the key levels were reached within the specified time.

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 $6,786 or $6,441. 

⦁ 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 $6,455 or $7,404.

⦁ 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 I thought that $7,404 had a good chance of being the day’s pivotal point so I would be prepared to take a short trade / short bias if we had gotten a bearish reversal at that level. I also noted that we were still in a strong, long-term bearish trend.

This was a good call although unfortunately the price never made it all the way back to $7,404.

The picture is more bearish today and the price is showing short-term bearish momentum. If it breaks through the next support level at $6,786 that would be another bearish sign.

I am prepared to take a short trade at any bearish rejection of a resistance level outlined above. It is significant that the price seems poised to make a new 6-month low.BTCUSDRegarding the USD, there will be a release of Chicago PMI data at 2:45pm 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.
Learn more from Adam in his free lessons at FX Academy