BTC/USD Forex Signal

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Bitcoin: Range is holding

Yesterday’s signals were not triggered, as none of the key levels were reached over the past day.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken 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 $7,131 or $6,786.

  • 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 $7,445, $7,698 or $7,824.

  • 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 there were a lot of support and resistance levels nearby, so price movement was likely to be difficult to predict. I thought that it would probably be wise to stand aside from trading Bitcoin for the time being. It could make sense to be bearish below $7,131 or bullish above $7,824.

I could have been more bearish, but I was right to not look for a bullish reversal until $7,131. The range I mentioned from $7,131 to $7,824 continues to hold and shows every sign of staying that way.

Therefore, I think the best opportunity which might arise today would be a long trade from a bullish bounce at $7,131. I would take a bullish bias if that sets up today, but bulls should be cautious here.BitcoinRegarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time and the FOMC Economic Projections, FOMC Statement, and Federal Funds Rate at 7pm plus the usual press conference half an hour later.

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