BTC/USD Forex Signal

|

Bitcoin: Weakly bullish

Last Thursday’s signals were not triggered as unfortunately we did not get the bullish turn at $7,698 until after 5pm Tokyo time.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Tuesday.

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,947 or $7,698.

  • 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

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,216 or $8,375 or $8,703.

  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

BTC/USD Analysis

I wrote last Thursday that it looked as if a deeper bearish pullback was underway. I thought that the most probable support level where we were likely to get a bullish turn was $7,477. I was correct about the bearish retracement before a bullish bounce, but I was wrong about the level where it would happen – it was actually the higher support level at $7,698 where we got the turn.

We have a more bullish picture now, but we still have a couple of resistance levels holding the price down, with the most important one at $8,216. I would take a bullish bias if we get a bounce at $7,947 and I would be more bullish still if the price can make two consecutive hourly closes above the resistance level at $8,375.

It is interesting that we may be seeing long-term buying now at these relatively lows as we begin 2020.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.
Learn more from Adam in his free lessons at FX Academy