BTC/USD Forex Signal: Strong bullish run continues

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Bitcoin: 2020 has seen solid long-term buying

Yesterday’s signals produced a profitable long trade from the bullish bounce at $8,966. It is probably worth keeping at least part of such a position open as long as the price trades above the new support level at $9,233.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 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 $9,233 or $8,802.
  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,489.
  • 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 the price was resting on new support at $8,966 after making a double top near $9,200 followed by a normal bearish retracement. As long as this level held, I saw the outlook as bullish. This was a great call as the price bounced there on the second attempt then took off to reach a new 2-month high price. I have also been saying that for Bitcoin to rise in value during the recent risk-off market sentiment was a significantly bullish sign.

The picture now is still more bullish technically with the breakout, and beyond the next resistance level at $9,489 the price has even more room to rise with no resistance, although the big round number and psychological level at $10,000 will probably have an effect if it is reached.

I maintain a bullish bias above $9,233.

BTC/USD

Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time followed by 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