BTC/USD Forex Signal

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Bitcoin: No clear direction

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action when the support level identified at $7,373 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade Ideas

⦁ Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,192 or $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 $7,459 or $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 last Thursday that with the strong rise from long-term low prices, it looked increasingly like long-term buyers stepped in. I thought that if the price could get established later above $7,800 that would be a very bullish sign. That was a fairly good call as the price did fail close to that price on Friday before moving down again, so it was enough to at least stay out of trouble.

The picture is more bearish again, but it seems that there is buying at the support level of $7,192 right now. However, the nearest resistance level at $7,459 also looks strong, so I think a period of consolidation here today is likely. I take no directional bias today.BTCUSDRegarding the USD, there will be a release of ISM 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.
Learn more from Adam in his free lessons at FX Academy