BTC/USD Forex Signal: More Bearish

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BTC/USD: Pivotal point at $9,518

Yesterday’s signals produced a long trade from the bullish bounce at $9,522.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,709, $9,518, or $9,117.

  • 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

  • Go short after a bullish price action reversal on the H1 time frame following the next touch of $10,047 or $10,440.

  • 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 bulls and bears seemed evenly matched but there was still good reason to be interested in long trades from any bullish bounces at support levels.

However, I also thought that if the price could remain below $10k for a while that would be a bearish sign.

I was correct to mention taking a trade from a bounce at support, as the bounce at $9,522 paid off even if only by a relatively small amount of profit.

The picture technically is more bearish, with the price staying below $10k and also continuing to make a series of lower highs over the medium term. However, there is still a chance that either of the nearby support levels will hold.

The area of support at about $9,500 is starting to look extremely pivotal. I will take a long trade here if we get another bullish bounce there, but if the price can close below $9,500 for two consecutive hours today, that would be a bearish sign and the price would probably then fall further.BTCUSDThere is nothing of high importance due today regarding 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