BTC/USD Forex Signal

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Yesterday’s signals produced a short trade from the bearish rejection of the resistance level at $9,489 which has already made the minimum $200 profit to break even. It may be worth holding on in case there is a further bearish breakdown.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 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

⦁ 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.

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BTC/USD Analysis

I wrote yesterday that as the consolidation pattern was continuing, I again would take a bullish bias if we had gotten a firm bounce at the support level of $8,893.

That level was never reached, but the consolidation within the range shown in my recent price charts has continued, with the upper level at $9,489 being firmly rejected a few hours ago. This arguably makes the consolidation at least a little less bullish.

This means that the best approach would probably now be to take a bullish bias above $9,489 and a bearish bias below $8,893. I suspect there may be more potential upside than downside, so a bullish breakout is likely to run further than a bearish one.BTCUSDRegarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.