BTC/USD Forex Signal: Stabilizing at $7,700 - 10 March 2020

Adam Lemon

BTC/USD: Panic hitting Bitcoin

Yesterday’s signals produced a long trade entry from another bullish bounce at $7,698 which is currently in a little profit, but it would probable be smart to exit this trade right away as the small bullish recovery looks vulnerable.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be entered 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 $7,698, $7,477, or $7,228, or $7,043.

  • Place the stop loss $50 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 bearish price action reversal on the H1 time frame following the next touch of $8,000, $8,216, or $8,375.

  • Place the stop loss $50 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.

BTC/USD Analysis

I wrote yesterday that the price may stabilize for a while, but it was hard to see risk sentiment improving significantly any time soon, so I took a bearish bias here as long as the price remained below $8,000.

This was a fairly good call even though the price has increased a little over the past 24 hours. However, it has remained below $8,000.

Although the price has continued to stabilize by getting support at $7,700 recoveries in other risky assets such as stocks has been stronger technically, so bulls look to be on shaky ground.

I will take a bearish bias if the price retraces to the $8,000 and prints a bearish rejection.BTCUSDThere is nothing of high importance due today concerning the USD.

About the Author
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

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