BTC/USD Forex Signal: Support Under Threat - 5 February 2020

Adam Lemon

BTC/USD: Weakly bullish above support at $9,117

Yesterday’s signals were not triggered as the bullish price action took place slightly below the support level at $9,141.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 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 $9,117, $8,802, or $8,683.

  • 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.

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.

BTC/USD Analysis

I wrote yesterday that I would expect a deeper bearish retracement if we had gotten a couple of consecutive hourly closes today below the level at $9,141. We did get these closes but unfortunately the price has risen a little from there, so it wasn’t a great call.

The technical picture is basically unchanged, I have just moved the pivotal support level down a little from $9,141 to $9,117. This area of support still looks somewhat pivotal, but perhaps a little less likely to break down now.

I would stand aside from trading this pair as it does not seem to be behaving clearly and decisively, and muddled price action is looking more likely now.BTCUSDConcerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time and ISM Non-Manufacturing PMI data at 3pm.

Adam Lemon

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

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.