BTC/USD Forex Signal- More bullish above $8,375

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Bitcoin: More bullish above $8,375

Yesterday’s signals were not triggered as there was no bearish price action at either of the resistance levels which were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,375, $8,216 or $7,947.

  • 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,703, $8,893, or $9,904.

  • 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 picture had become more bullish and that I would take a bullish bias if we had gotten a bounce at $7,947 and I would be more bullish still if the price could make two consecutive hourly closes above the resistance level at $8,375. This was an OK call as the price did recently make two closes above $8,375 and has continued to advance from there.

I also noted yesterday that we may be seeing long-term buying now. This seems to be the case and we have a simple story of the price continuing to advance firmly and flipping all the resistance levels it exceeds to become new support which in itself is a bullish sign.

I take a bullish bias today above $8,375 until at least $8,703 and I would not look to take any short trades. The risk-on sentiment in the market is probably helping Bitcoin rise in value right now.BTCUSDConcerning the USD, there will be a release of CPI data at 1:30pm 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