BTC/USD Forex Signal

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Bitcoin: Bullish consolidation above $8,893 continuing

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 must be taken prior to 5pm Tokyo time Friday.

Long Trade Ideas

⦁ Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,222, $8,893, or $8,458. 

⦁ 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.

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BTC/USD Analysis

I wrote yesterday that the technical picture had become a little more bullish, as the new higher support level which formed within the consolidation zone at $9,222 was still holding up. 

There has been no change to the technical picture at all. The price at the time of writing is sitting on that support level. If it holds and begins to rise from there firmly, we would have a bullish entry signal.

The price has more room to rise than fall, so I still see the best opportunity as a long trade, either from the support at $9,222 or following a breakout above $9,489. I would take a bullish bias if either scenario plays out today.

There is room for the price to rise to the $10,000 very quickly following such a bullish breakout.BTCUSDThere 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.